Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2019 | Nov. 21, 2019 | Mar. 29, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 27, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-35451 | ||
Entity Registrant Name | MACOM Technology Solutions Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-0306875 | ||
Entity Address, Address Line One | 100 Chelmsford Street | ||
Entity Address, City or Town | Lowell | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01851 | ||
City Area Code | 978 | ||
Local Phone Number | 656-2500 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | MTSI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 762.2 | ||
Entity Common Stock, Share Outstanding | 66,161,045 | ||
Documents Incorporated by Reference [Text Block] | Part III incorporates certain information by reference from the registrant's definitive proxy statement for the 2020 Annual Meeting of Stockholders, which will be filed no later than 120 days after the close of the registrant's fiscal year ended September 27, 2019 . | ||
Entity Central Index Key | 0001493594 | ||
Current Fiscal Year End Date | --09-27 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 75,519 | $ 94,676 |
Short-term investments | 101,226 | 98,221 |
Accounts receivable (less allowances of $5,047 and $6,795, respectively) | 69,790 | 97,375 |
Inventories | 107,880 | 122,837 |
Income tax receivable | 16,661 | 17,601 |
Assets held for sale | 0 | 4,840 |
Prepaid and other current assets | 27,506 | 23,311 |
Total current assets | 398,582 | 458,861 |
Property, plant and equipment, net | 132,647 | 149,923 |
Goodwill | 314,727 | 314,076 |
Intangible assets, net | 181,228 | 512,785 |
Deferred income taxes | 43,812 | 2,272 |
Other investments | 23,613 | 31,094 |
Other long-term assets | 10,965 | 13,484 |
Total assets | 1,105,574 | 1,482,495 |
Current liabilities: | ||
Current portion of leases payable | 1,084 | 467 |
Current portion long-term debt | 6,885 | 6,885 |
Accounts payable | 24,822 | 41,951 |
Accrued liabilities | 39,908 | 49,945 |
Deferred revenue | 2,137 | 7,757 |
Total current liabilities | 74,836 | 107,005 |
Leases payable, less current portion | 29,506 | 29,023 |
Long-term debt, less current portion | 655,272 | 658,372 |
Warrant liability | 12,364 | 13,129 |
Other long-term liabilities | 19,068 | 5,902 |
Deferred income taxes | 632 | 389 |
Total liabilities | 791,678 | 813,820 |
Stockholders' equity: | ||
Preferred stock, $0.001 par value, 10,000 shares authorized, no shares issued | 0 | 0 |
Common stock, $0.001 par value, 300,000 shares authorized; 66,177 and 65,202 shares issued and 66,154 and 65,179 shares outstanding as of September 27, 2019 and September 28, 2018, respectively, of which 0 and 6 shares, respectively, are subject to forfeiture | 66 | 65 |
Treasury Stock, at cost, 23 shares as of both September 27, 2019 and September 28, 2018 | (330) | (330) |
Accumulated other comprehensive income | 4,358 | 2,188 |
Additional paid-in capital | 1,101,576 | 1,074,728 |
Accumulated deficit | (791,774) | (407,976) |
Total stockholders' equity | 313,896 | 668,675 |
Total liabilities and stockholders' equity | $ 1,105,574 | $ 1,482,495 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 5,047 | $ 6,795 |
Preferred stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, issued (in shares) | 66,177,000 | 65,202,000 |
Common stock, outstanding (in shares) | 66,154,000 | 65,179,000 |
Common stock, subject to forfeiture (in shares) | 0 | 6,100 |
Treasury stock (in shares) | 23,000 | 23,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Income Statement [Abstract] | |||
Revenue | $ 499,708 | $ 570,398 | $ 698,772 |
Cost of revenue | 279,000 | 324,692 | 371,888 |
Gross profit | 220,708 | 245,706 | 326,884 |
Operating expenses: | |||
Research and development | 163,469 | 177,713 | 147,986 |
Selling, general and administrative | 153,286 | 161,673 | 187,886 |
Impairment charges | 264,786 | 6,575 | 4,352 |
Restructuring charges | 19,543 | 6,265 | 2,744 |
Total operating expenses | 601,084 | 352,226 | 342,968 |
Loss from operations | (380,376) | (106,520) | (16,084) |
Other (expense) income: | |||
Warrant liability gain (expense) | 765 | 27,646 | (2,522) |
Interest expense, net | (35,803) | (31,338) | (28,855) |
Other expense | (7,739) | (45,023) | (2,044) |
Total other expense, net | (42,777) | (48,715) | (33,421) |
Loss before income taxes | (423,153) | (155,235) | (49,505) |
Income tax (benefit) expense | (39,355) | (21,473) | 100,911 |
Loss from continuing operations | (383,798) | (133,762) | (150,416) |
Loss from discontinued operations | 0 | (6,215) | (19,077) |
Net loss | $ (383,798) | $ (139,977) | $ (169,493) |
Basic loss per share: | |||
Loss from continuing operations (in USD per share) | $ (5.84) | $ (2.07) | $ (2.48) |
Loss from discontinued operations (in USD per share) | 0 | (0.10) | (0.31) |
Loss per share-basic (in USD per share) | (5.84) | (2.16) | (2.79) |
Diluted loss per share: | |||
Loss from continuing operations (in USD per share) | (5.84) | (2.47) | (2.48) |
Loss from discontinued operations (in USD per share) | 0 | (0.10) | (0.31) |
Loss per share-diluted (in USD per share) | $ (5.84) | $ (2.57) | $ (2.79) |
Shares used: | |||
Basic (in shares) | 65,686 | 64,741 | 60,704 |
Diluted (in shares) | 65,686 | 65,311 | 60,704 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (383,798) | $ (139,977) | $ (169,493) |
Unrealized gain (loss) on short-term investments, net of tax | 477 | (287) | (63) |
Foreign currency translation gain (loss), net of tax | 1,693 | (502) | (5,999) |
Other comprehensive income (loss), net of tax | 2,170 | (789) | (6,062) |
Total comprehensive loss | $ (381,628) | $ (140,766) | $ (175,555) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Additional Paid-In Capital | Accumulated Deficit |
Beginning Balance (in shares) at Sep. 30, 2016 | 53,709 | |||||
Beginning balance at Sep. 30, 2016 | $ 462,784 | $ 54 | $ (330) | $ 9,039 | $ 551,509 | $ (97,488) |
Beginning Balance Treasury stock (in shares) at Sep. 30, 2016 | (23) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock option exercise (in shares) | 234 | |||||
Stock option exercises | 3,117 | 3,117 | ||||
Vesting of restricted common stock and units (in shares) | 984 | |||||
Vesting of restricted common stock and units | 0 | $ 0 | ||||
Issuance of common stock pursuant to employee stock purchase plan (in shares) | 145 | |||||
Issuance of common stock pursuant to employee stock purchase plan | 5,164 | 5,164 | ||||
Shares repurchased for tax withholdings on restricted stock awards (in shares) | (382) | |||||
Shares repurchased for tax withholdings on restricted stock awards | (18,534) | $ 0 | (18,534) | |||
Share-based compensation | 36,335 | 36,335 | ||||
Shares issued in connection with acquisition including converted equity awards (in shares) | 9,589 | |||||
Shares issued in connection with the AppliedMicro acquisition including converted equity awards | 465,082 | $ 10 | 465,072 | |||
Equity issuance costs | (1,019) | (1,019) | ||||
Other comprehensive loss, net of tax | (6,062) | (6,062) | ||||
Net loss | (169,493) | (169,493) | ||||
Ending Balance (in shares) at Sep. 29, 2017 | 64,279 | |||||
Ending balance at Sep. 29, 2017 | 777,374 | $ 64 | $ (330) | 2,977 | 1,041,644 | (266,981) |
Ending Balance Treasury stock (in shares) at Sep. 29, 2017 | (23) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock option exercise (in shares) | 27 | |||||
Stock option exercises | 76 | 76 | ||||
Vesting of restricted common stock and units (in shares) | 906 | |||||
Vesting of restricted common stock and units | 1 | $ 1 | ||||
Issuance of common stock pursuant to employee stock purchase plan (in shares) | 306 | |||||
Issuance of common stock pursuant to employee stock purchase plan | 6,881 | 6,881 | ||||
Shares repurchased for tax withholdings on restricted stock awards (in shares) | (316) | |||||
Shares repurchased for tax withholdings on restricted stock awards | (6,828) | (6,828) | ||||
Share-based compensation | 31,937 | 31,937 | ||||
Other comprehensive loss, net of tax | (789) | (789) | ||||
Net loss | (139,977) | (139,977) | ||||
Ending Balance (in shares) at Sep. 28, 2018 | 65,202 | |||||
Ending balance at Sep. 28, 2018 | $ 668,675 | $ 65 | $ (330) | 2,188 | 1,074,728 | (407,976) |
Ending Balance Treasury stock (in shares) at Sep. 28, 2018 | 23 | (23) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | 1,018 | (1,018) | |||
Stock option exercise (in shares) | 119 | 119 | ||||
Stock option exercises | $ 1,608 | $ 0 | 1,608 | |||
Vesting of restricted common stock and units (in shares) | 673 | |||||
Vesting of restricted common stock and units | 1 | $ 1 | ||||
Issuance of common stock pursuant to employee stock purchase plan (in shares) | 422 | |||||
Issuance of common stock pursuant to employee stock purchase plan | 5,585 | 5,585 | ||||
Shares repurchased for tax withholdings on restricted stock awards (in shares) | (239) | |||||
Shares repurchased for tax withholdings on restricted stock awards | (4,137) | $ 0 | (4,137) | |||
Share-based compensation | 23,792 | 23,792 | ||||
Other comprehensive loss, net of tax | 2,170 | 2,170 | ||||
Net loss | (383,798) | (383,798) | ||||
Ending Balance (in shares) at Sep. 27, 2019 | 66,177 | |||||
Ending balance at Sep. 27, 2019 | $ 313,896 | $ 66 | $ (330) | $ 4,358 | $ 1,101,576 | $ (791,774) |
Ending Balance Treasury stock (in shares) at Sep. 27, 2019 | 23 | (23) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (383,798) | $ (139,977) | $ (169,493) |
Adjustments to reconcile net (loss) income to net cash from operating activities: | |||
Depreciation and intangible amortization | 104,418 | 112,383 | 92,998 |
Share-based compensation | 23,792 | 31,937 | 36,335 |
Warrant liability (gain) expense | (765) | (27,646) | 2,522 |
Acquired inventory step-up amortization | 0 | 224 | 44,022 |
Deferred financing costs amortization and write offs | 4,061 | 4,587 | 3,373 |
Acquisition prepaid compensation amortization | 0 | 0 | 506 |
Loss (gain) from disposition of business | 0 | 34,343 | (25,520) |
Deferred income taxes | (41,297) | (16,528) | 92,171 |
Impairment related charges | 273,572 | 9,143 | 4,352 |
Loss on minority equity investment | 7,481 | 10,406 | 0 |
Changes in assets held for sale from discontinued operations | 0 | (6,644) | 218 |
Other adjustments, net | 194 | 1,463 | 2,400 |
Change in operating assets and liabilities: | |||
Accounts receivable | 27,585 | 38,679 | (15,754) |
Inventories | 14,964 | (2,166) | (4,094) |
Prepaid expenses and other assets | 3,419 | (10,585) | 1,126 |
Accounts payable | (12,220) | (2,609) | 3,449 |
Accrued and other liabilities | (2,486) | 2,347 | (15,176) |
Income taxes | 1,780 | (3,064) | 7,615 |
Net cash from operating activities | 20,700 | 36,293 | 61,050 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisition of businesses, net | (375) | (1,000) | (270,008) |
Purchases of property and equipment | (37,963) | (53,044) | (32,804) |
Proceeds from sale of assets | 5,541 | 1,274 | 215 |
Proceeds from sales and maturities of short-term investments | 173,020 | 100,375 | 44,555 |
Purchases of short-term investments | (174,114) | (114,461) | (105,048) |
Purchases of other investments | 0 | (5,000) | 0 |
Proceeds associated with divested business and discontinued operations | 0 | 4,737 | 25,520 |
Net cash used in investing activities | (33,891) | (67,119) | (337,570) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from stock option exercises and employee stock purchases | 7,193 | 6,957 | 8,281 |
Payments on notes payable | (6,885) | (6,885) | (4,747) |
Payments of capital leases and assumed debt | (1,421) | (713) | (1,137) |
Repurchase of common stock- tax withholdings on equity awards | (4,137) | (6,828) | (18,534) |
Proceeds from corporate facility financing obligation | 0 | 4,000 | 0 |
Payments of financing costs | 0 | (505) | (9,077) |
Proceeds from notes payable | 0 | 0 | 96,558 |
Other adjustments, net | (578) | (477) | 2,309 |
Net cash (used in) from financing activities | (5,828) | (4,451) | 73,653 |
Foreign currency effect on cash | (138) | (151) | (6) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (19,157) | (35,428) | (202,873) |
CASH AND CASH EQUIVALENTS — Beginning of year | 94,676 | 130,104 | 332,977 |
CASH AND CASH EQUIVALENTS — End of year | 75,519 | 94,676 | 130,104 |
Supplemental disclosure of non-cash activities (See Note 25 - Supplemental Cash Flow Information) | |||
Equity interests issued and issuable | $ 0 | $ 0 | $ 465,082 |
Description of Business
Description of Business | 12 Months Ended |
Sep. 27, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS MACOM Technology Solutions Holdings, Inc. (the "Company") was incorporated in Delaware on March 25, 2009. We are a leading provider of high-performance analog semiconductor solutions that enable next-generation Internet applications, the cloud connected apps economy, and the modern, networked battlefield across the RF, microwave, millimeterwave and lightwave spectrum. We design, develop, manufacture and have manufactured differentiated, high-value products for customers who demand high performance, quality and reliability. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 27, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation, Basis of Presentation and Reclassification —We have one reportable segment, semiconductors and modules. The accompanying consolidated financial statements include our accounts and the accounts of our majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. We have a 52- or 53-week fiscal year ending on the Friday closest to the last day of September. The fiscal years 2019 , 2018 and 2017 included 52 weeks. To offset the effect of holidays, for fiscal years in which there are 53 weeks, we typically include the extra week arising in our fiscal years in the first quarter. Use of Estimates —The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities during the reporting periods, the reported amounts of revenue and expenses during the reporting periods and the disclosure of contingent assets and liabilities at the date of the financial statements. On an ongoing basis, we base estimates and assumptions on historical experience, currently available information and various other factors that management believes to be reasonable under the circumstances. Actual results may differ from these estimates and assumptions. Divested Businesses and Discontinued Operations— In the first quarter of fiscal year 2018, we divested AppliedMicro's compute business (the "Compute business"). The operating results of the Compute business are reflected in discontinued operations. In the third quarter of fiscal year 2018, we divested our Japan-based long-range optical subassembly business (the "LR4 business"). The operating results of the LR4 business have been reflected in our continuing operations up through the May 10, 2018 sale date, with the $34.3 million loss on disposal recorded as other expense. See Note 23 - Divested Business and Discontinued Operations for additional information. Foreign Currency Translation and Remeasurement —Our consolidated financial statements are presented in U.S. dollars. While the majority of our foreign operations use the U.S. dollar as the functional currency, the financial statements of our foreign operations for which the functional currency is not the U.S. dollar are translated into U.S. dollars at the exchange rates in effect at the balance sheet dates (for assets and liabilities) and at average exchange rates (for revenue and expenses). The unrealized translation gains and losses on the net investment in these foreign operations are accumulated as a component of other comprehensive (loss) income. The financial statements of our foreign operations where the functional currency is the U.S. dollar, but where the underlying transactions are transacted in a different currency, are remeasured at the exchange rate in effect at the balance sheet date with respect to monetary assets and liabilities. Nonmonetary assets and liabilities, such as inventories and property and equipment and related statements of operations accounts, such as cost of revenue and depreciation, are remeasured at historical exchange rates. Revenue and expenses, other than cost of revenue, amortization and depreciation, are translated at the average exchange rate for the period in which the transaction occurred. The net gains and losses on foreign currency remeasurement are reflected in selling, general and administrative expense in the accompanying Consolidated Statements of Operations. Net foreign exchange transaction gains and losses for all periods presented were not material. Cash and Cash Equivalents —Cash equivalents are primarily composed of short-term, highly-liquid instruments with an original maturity of 90 days or less and consist primarily of money market funds. Investments — Short-term investments: We classify our short-term investments as available-for-sale. Our investments classified as available-for-sale are recorded at fair value based upon third party pricing at period end. Unrealized gains and losses that are deemed temporary in nature are recorded in accumulated other comprehensive income and loss as a separate component of stockholders’ equity. A decline in the fair value of any security below cost that is deemed other than temporary results in a charge to earnings and the corresponding establishment of a new cost basis for the security. Premiums and discounts are amortized (accreted) over the life of the related security as an adjustment to its yield. Dividend and interest income are recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of investments sold. Other investments: We use the equity method to account for investments in companies if the investment provides us with the ability to exercise significant influence over operating and financial policies of the investee. Our proportionate share of the net income (loss) resulting from these investments are reported within the Other expense line in our Consolidated Statements of Operations. The carrying value of our equity method investment is reported in Other investments in our Consolidated Balance Sheets. Our equity method investment is reported at cost and adjusted each period for our share of the investee’s income or loss and dividends paid, if any, as well as any changes attributable to the equity of the investee that would impact our ownership. Other investments that are not controlled, and over which we do not have the ability to exercise significant influence, are accounted for under the cost method and reported in Other investments in our Consolidated Balance Sheets. We have elected that our cost method investments, which do not have readily determinable fair values and do not qualify for the practical expedient under Accounting Standards Codification ("ASC") 820, Fair Value Measurement , are carried at cost less any impairment. The investments do not have readily determinable fair values and are periodically evaluated for impairment. An impairment loss would be recorded whenever there is a decline in value of an investment below its carrying amount that is determined to be other than temporary. Refer to Note 5 - Investments, for additional information. Inventories —Inventories are stated at the lower of cost or net realizable value. We use a combination of standard cost and moving weighted-average cost methodologies to determine the cost basis for our inventories, approximating a first-in, first-out basis. The standard cost of finished goods and work-in-process inventory is composed of material, labor and manufacturing overhead, which approximates actual cost. In addition to stating inventory at the lower of cost or net realizable value, we also evaluate inventory each reporting period for excess quantities and obsolescence, establishing reserves when necessary based upon historical experience, assessment of economic conditions and expected demand. Once recorded, these reserves are considered permanent adjustments to the carrying value of inventory. Property, Plant and Equipment —Property, plant and equipment is stated at cost, less accumulated depreciation and amortization. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major improvements that significantly extend the useful life of the assets are capitalized as additions to property and equipment. Property and equipment are depreciated or amortized using the straight-line method over the following estimated useful lives: Asset Classification Estimated Useful Life (In Years) Buildings and improvements 20 – 40 Capital lease assets 5 - 20 Computer equipment and software 2 – 5 Furniture and fixtures 7 – 10 Leasehold improvements Shorter of useful life or term of lease Machinery and equipment 2 – 7 Goodwill and Indefinite-Lived Intangible Assets —We have goodwill and certain intangible assets with indefinite lives which are not subject to amortization; these are reviewed for impairment annually as of the end of our August fiscal month end and more frequently if events or changes in circumstances indicate that the assets may be impaired. For our assessment of goodwill impairment, we compare the carrying value of the reporting unit to the fair value of the Company. For our assessment of in-service indefinite-lived assets we compare the carrying value of the asset to the estimated fair value of the asset. For indefinite-lived assets not in service, such as in-process research and development, we perform both qualitative and quantitative assessments using an assumption of "more likely than not" to determine if there are any impairment indicators. If impairment exists, a loss is recorded to write down the value of the assets to their implied fair values. During the fiscal year ended September 29, 2017, we recorded impairment charges related to indefinite-lived intangible assets. S ee Note 17 - Impairments , for further detail of these impairment charges. There were no significant expenses related to abandoned in-process research and development projects in any other period presented. Long-Lived Asset Valuation and Impairment Assessment —Long-lived assets include property and equipment and definite-lived intangible assets subject to amortization. We evaluate long-lived assets for recoverability when events or changes in circumstances indicate that their carrying amounts may not be recoverable. Circumstances which could trigger a review include, but are not limited to, significant decreases in the market price of the asset or asset group, significant adverse changes in the business climate or legal factors, the accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset, current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset and a current expectation that the asset will more likely than not, be sold or disposed of significantly before the end of its previously estimated useful life. In evaluating a long-lived asset for recoverability, we estimate the undiscounted cash flows expected to result from our use and eventual disposition of the asset. If the sum of the expected undiscounted cash flows is less than the carrying amount of the asset group, an impairment loss, equal to the excess of the carrying amount over the fair value of the asset, is recognized. In fiscal year 2019, we recorded impairment charges primarily as a result of restructuring actions initiated during the year. In fiscal year 2018, we recorded impairment charges related to property and equipment and other assets designated for future use with Zhongxing Telecommunications Equipment Corporation ("ZTE"), as a result of the Bureau of Industry and Security ("BIS") denial order on April 15, 2018. There were no impairments of long-lived assets in fiscal year 2017. S ee Note 17 - Impairments , for further detail of these impairment charges. Intangible assets related to in-process research and development acquired are not amortized until the underlying asset begins revenue-generating activity, at which time it is amortized over its estimated useful life. Intangibles related to abandoned in-process research and development projects are expensed in the period the project is abandoned. Other Intangible Assets —Our other intangible assets, including acquired technology and customer relationships, are definite-lived assets and are subject to amortization. We amortize definite-lived assets over their estimated useful lives, which range from five to fourteen years , generally based on the pattern over which we expect to receive the economic benefit from these assets. Revenue Recognition —Substantially all of our revenue is derived from sales of high-performance RF, microwave, millimeterwave and lightwave semiconductor solutions into three primary markets: Telecom, Data Centers and I&D. In fiscal years 2018 and 2017, we recognized revenue under Accounting Standards Codification ("ASC") 605, Revenue Recognition, when: (i) persuasive evidence of an arrangement existed; (ii) delivery or services had been rendered; (iii) the price was fixed or determinable; and (iv) collectability was reasonably assured. We recognized revenue with the transfer of title and risk of loss and provided for reserves for returns and other allowances. In fiscal year 2019, we recognized revenue within the scope of ASC 606, Revenue from Contracts with Customers. Revenue is recognized when a customer obtains control of products or services in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. To determine revenue recognition for arrangements within the scope of ASC 606, we perform the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) we satisfy performance obligations. Sales, value add and other taxes collected on behalf of third parties are excluded from revenue. Our revenue arrangements do not contain significant financing components. Contracts with our customers principally contain only one distinct performance obligation, which is the sale of products. However, due to multiple products potentially being sold on a single order, we are required to allocate consideration based on the estimated relative standalone selling prices of the promised products. Periodically, we enter into non-product development and license contracts with certain customers. We generally recognize revenue from these contracts over-time as services are provided based on the terms of the contract. Revenue is deferred for amounts billed or received prior to delivery of the services. Certain contracts may contain multiple performance obligations for which we allocate revenue to each performance obligation based on the relative stand-alone selling price. Our product revenue is recognized when the customer obtains control of the product or services, which generally occurs at a point in time, and is based on the contractual shipping terms of a contract. Non-product revenue is generally recognized over time. For each contract, the promise to transfer the control of the products or services, each of which is individually distinct, is considered to be the identified performance obligation. We provide an assurance type warranty which is not sold separately and does not represent a separate performance obligation. Therefore, we account for such warranties under ASC 460, Guarantees , and the estimated costs of warranty claims are generally accrued as cost of revenue in the period the related revenue is recorded. We have agreements with certain distribution customers which may include certain rights of return and pricing programs, including returns for aged inventory, stock rotation and price protection which affect the transaction price. Sales to these customers and programs offered are in accordance with terms set forth in written agreements, which require us to assess the potential revenue effects of this variable consideration utilizing the expected value method. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. As such, revenue on sales to customers that include rights of return and pricing programs are recorded net of estimated variable consideration, utilizing the expected value method based on historical sales data. We believe that the judgments and estimates we utilize are reasonable based upon current facts and circumstances, however utilizing different judgments and estimates could result in different amounts. Practical Expedients and Elections — ASC 606 requires that we disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of the reporting periods presented. The guidance provides certain practical expedients that limit this requirement and, therefore, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which revenue is recognized at the amount to which we have the right to invoice for services performed. We have elected not to disclose the aggregate amount of transaction prices associated with unsatisfied or partially unsatisfied performance obligations for contracts where these criteria are met. Our policy is to capitalize any incremental costs incurred to obtain a customer contract, only to the extent that the benefit associated with the costs is expected to be longer than one year. Capitalizable contract costs were not significant both at the date of adoption and as of September 27, 2019 . We account for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products. When shipping and handling costs are incurred after a customer obtains control of the products, we have elected to account for these as costs to fulfill the promise and not as a separate performance obligation. Shipping and handling costs associated with the distribution of products to customers are recorded in costs of revenue generally when the related product is shipped to the customer. Research and Development Costs —Costs incurred in the research and development of products are expensed as incurred. Income Taxes —Deferred tax assets and liabilities are recognized based on temporary differences between the financial reporting and income tax bases of assets and liabilities, using rates anticipated to be in effect when such temporary differences reverse. A valuation allowance against net deferred tax assets is required if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. We provide reserves for potential payments of tax to various tax authorities related to uncertain tax positions and other issues. Reserves are based on a determination of whether and how much of a tax benefit is taken by us in our tax filings or positions that are more likely than not to be realized following an examination by taxing authorities. We recognize the financial statement benefit of an uncertain tax position only after considering the probability that a tax authority would sustain the position in an examination. For tax positions meeting a “more-likely-than-not” threshold, the amount recognized in the financial statements is the benefit expected to be realized upon settlement with the tax authority. For tax positions not meeting the threshold, no financial statement benefit is recognized. Potential interest and penalties associated with such uncertain tax positions are recorded as a component of income tax expense. Earnings Per Share —Basic net (loss) income per share is computed by dividing net (loss) income by the weighted-average number of common shares outstanding during the period, excluding the dilutive effect of common stock equivalents. Diluted net (loss) income per share reflects the dilutive effect of common stock equivalents, such as stock options, warrants and restricted stock units, using the treasury stock method. Fair Value Measurements —Financial assets and liabilities are measured at fair value. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability at the measurement date under current market conditions in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, we group financial assets and liabilities in a three-tier fair value hierarchy, according to the inputs used in measuring fair value as follows: Level 1—observable inputs such as quoted prices in active markets for identical assets and liabilities; Level 2—inputs other than quoted prices in active markets that are observable either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical assets and liabilities in markets that are not active and model-based valuation techniques for which significant assumptions are observable in active markets; and, Level 3—unobservable inputs for which there is little or no market data, requiring us to develop our own assumptions for model-based valuation techniques. This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Money market funds are actively traded and consist of highly liquid investments with original maturities of 90 days or less. They are measured at their net asset value and classified as Level 1. Corporate and agency bonds and commercial paper are categorized as Level 2 assets except where sufficient quoted prices exist in active markets, in which case such securities are categorized as Level 1 assets. These securities are valued using third-party pricing services. These services may use, for example, model-based pricing methods that utilize observable market data as inputs. We generally use quoted prices for recent trading activity of assets with similar characteristics to the debt security or bond being valued. The securities and bonds priced using such methods are generally classified as Level 2. Broker dealer bids or quotes on securities with similar characteristics may also be used. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these assets and liabilities. Share-Based Compensation —We account for all share-based compensation arrangements using the fair value method. We recognize compensation expense over the requisite service period of the award, which is generally the vesting period, using the straight-line method for service-based awards and the accelerated method for performance-based awards, and providing that the minimum amount of compensation recorded is equal to the vested portion of the award. We record the expense in the Consolidated Statements of Operations in the same manner in which the award recipients’ salary costs are classified. For restricted stock awards with service conditions we use the closing stock price on the date of grant to estimate the fair value of the awards. We use the Black-Scholes option-pricing model to estimate the fair value of stock options with service and performance conditions, inclusive of assumptions for risk-free interest rates, dividends, expected terms and estimated volatility. We use the Monte Carlo Simulation analysis to estimate the fair value of stock options and awards with market conditions, inclusive of assumptions for risk free interest rates, expected term, expected volatility and the target price. We derive the risk-free interest rate assumption from the U.S. Treasury’s rates for U.S. Treasury zero-coupon bonds with maturities similar to the expected term of the award being valued. We base the assumed dividend yield on its expectation of not paying dividends in the foreseeable future. We calculate the weighted-average expected term of the options using historical data. In addition, we calculate our estimated volatility using our historical stock price volatility data. In fiscal year 2018 we adopted Accounting Standards Update ("ASU") 2016-09, Compensation - Stock Compensation ("ASU 2016-09"), and upon adoption we elected to account for forfeitures when they occur. Prior to the adoption of ASU 2016-09 the accounting for share-based compensation required forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differed from those estimates. Share-based awards that are settled in cash are recorded as liabilities. The measurement of the liability and compensation cost for these awards is based on the fair value of the award, and is recorded in operating income over the award’s vesting period. Changes in our payment obligation prior to the settlement date of a stock-based award are recorded as compensation expense in operating income in the period of the change. The final payment amount for such awards is established on the date of the exercise of the award by the employee. Guarantees and Indemnification Obligations —We enter into agreements in the ordinary course of business with, among others, customers, distributors and OEMs. Most of these agreements require us to indemnify the other party against third-party claims alleging that a Company product infringes a patent and/or copyright. Certain agreements in which we grant limited licenses to Company intellectual property require us to indemnify the other party against third-party claims alleging that the use of the licensed intellectual property infringes a third-party's intellectual property. Certain of these agreements require us to indemnify the other party against certain claims relating to property damage, personal injury or the acts or omissions, its employees, agents or representatives. In addition, from time to time, we have made certain guarantees in the form of warranties regarding the performance of Company products to customers. We have agreements with certain vendors, creditors, lessors and service providers pursuant to which we have agreed to indemnify the other party for specified matters, such as acts and omissions, its employees, agents or representatives. We have procurement or license agreements with respect to technology used in our products and agreements in which we obtain rights to a product from an OEM. Under some of these agreements, we have agreed to indemnify the supplier for certain claims that may be brought against such party with respect to our acts or omissions relating to the supplied products or technologies. Our certificate of incorporation and agreements with certain of our directors and officers and certain of our subsidiaries’ directors and officers provide them indemnification rights, to the extent legally permissible, against liabilities incurred by them in connection with legal actions in which they may become involved by reason of their service as a director or officer. As a matter of practice, we have maintained director and officer liability insurance coverage, including coverage for directors and officers of acquired companies. We have not experienced any losses related to these indemnification obligations in any period presented and no claims with respect thereto were outstanding as of September 27, 2019 and September 28, 2018 . We do not expect significant claims related to these indemnification obligations and, consequently, have concluded that the fair value of these obligations is negligible. No liabilities related to indemnification liabilities have been established. Recent Accounting Pronouncements Pronouncements Adopted in Fiscal Year 2019 We adopted ASU 2014-09, Revenue from Contracts with Customers, on September 29, 2018. The Financial Accounting Standards Board ("FASB") subsequently issued several amendments and updates to the new revenue standard. We refer to ASU 2014-09 and its related ASUs as "ASC 606". We applied ASC 606 using the modified retrospective method and elected to apply this initial application of the standard only to contracts that are not completed at the date of initial application. We have analyzed this effect and found the adoption of the new guidance did not have a material impact on our consolidated financial statements as of the adoption date. The reported results for our fiscal year 2019 reflect the application of ASC 606 guidance while the reported results for our fiscal year 2018 were prepared under the guidance of ASC 605, Revenue Recognition . We adopted ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, on September 29, 2018. In February 2018, the FASB issued further amendments to this guidance. This ASU amended the guidance on the classification and measurement of financial instruments. The new standard significantly revised an entity's accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amended certain disclosure requirements associated with the fair value of financial instruments. The adoption of this update did not have a material impact on our consolidated financial statements and related disclosures. We adopted ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, on September 29, 2018. This update addressed debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. The adoption of this update did not have a material impact on our consolidated financial statements and related disclosures. We adopted ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, on September 29, 2018. This update provides guidance that changes the accounting for income tax effects of intra-entity transfers of assets other than inventory. Under the new guidance, the selling (transferring) entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing (receiving) entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. Pronouncements for Adoption in Subsequent Periods In February 2016, the FASB issued ASU 2016-02, Leases ("ASC 842"). The FASB subsequently issued several amendments and updates to the new leasing standard. The new standard increases transparency and comparability among organizations by recognizing right-of-use assets and lease liabilities on the Balance Sheet and disclosing key information about leasing arrangements. Under ASC 842, leases are classified as either operating or finance, based on criteria similar to current lease accounting, but without explicit bright lines. ASC 842 is effective for us as of September 28, 2019, and we will apply ASC 842 using the cumulative-effect adjustment on this date, with comparative periods presented in accordance with the previous guidance in ASC 840, Leases ("ASC 840"). We will use certain targeted transitional approaches that are intended to provide relief in implementing the new standard which allows us to not reassess previous accounting conclusions around whether arrangements are, or contain, leases; the classification of leases; and the treatment of initial direct costs. We will make an accounting policy election to exclude leases with an initial term of twelve months or less from the Balance Sheet similar to existing guidance for operating leases under ASC 840. We are currently assessing the impact that the adoption of ASC 842 will have on our consolidated financial statements. We currently expect a material impact to the Consolidated Balance Sheet in recognizing additional lease liabilities of $42.0 million to $46.0 million and right-of-use assets of $33.0 million to $37.0 million as of September 28, 2019, primarily related to our operating leases. We will provide enhanced disclosures about our leasing arrangements in our consolidated financial statements for future periods. We do not expect that the new standard will have a material impact on our Consolidated Statements of Operations or Cash Flows. In June 2016, the |
Acquisitions
Acquisitions | 12 Months Ended |
Sep. 27, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Acquisition of Applied Micro Circuits Corporation— On January 26, 2017, we completed the acquisition of Applied Micro Circuits Corporation ("AppliedMicro"), a global provider of silicon solutions for next-generation cloud infrastructure and Cloud Data Centers, as well as connectivity products for edge, metro and long-haul communications equipment (the "AppliedMicro Acquisition"). We acquired AppliedMicro in order to expand our business in enterprise and Cloud Data Center applications. In connection with the AppliedMicro Acquisition, we acquired all of the outstanding common stock of AppliedMicro for total consideration of $695.4 million , which included cash paid of $287.1 million , less $56.8 million of cash acquired, and equity issued at a fair value of $465.1 million . In conjunction with the equity issued, we granted vested out-of-the-money stock options and unvested restricted stock units to replace outstanding vested out-of-the-money stock options and unvested restricted stock units of AppliedMicro. The total fair value of granted vested out-of-money stock options and unvested restricted stock units was $14.5 million , of which $9.3 million was attributable to pre-combination service and was included in the total consideration transferred. We funded the AppliedMicro Acquisition with cash on hand and short-term investments. There were no transaction costs for the fiscal years ended September 27, 2019 and September 28, 2018, and during the fiscal year ended September 29, 2017, we recorded transaction costs of $11.9 million . We recorded transaction costs related to the acquisition in selling, general and administrative expense, except for $1.0 million related to equity issuance costs that were recorded to additional paid-in capital. The AppliedMicro Acquisition was accounted for as a stock purchase and the operations of AppliedMicro have been included in our consolidated financial statements since the date of acquisition. We recognized the AppliedMicro assets acquired and liabilities assumed based upon the fair value of such assets and liabilities measured as of the date of acquisition. The aggregate purchase price for AppliedMicro has been allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair value at the date of acquisition. The excess of the purchase price over the fair value of the acquired net assets represents cost and revenue synergies specific to the Company, as well as non-capitalizable intangible assets, such as the employee workforce acquired, and has been allocated to goodwill, none of which will be tax deductible. In connection with the acquisition of AppliedMicro, we entered into a plan to divest a portion of AppliedMicro's business specifically related to its compute business (the "Compute business"). The divestiture of the Compute business was completed on October 27, 2017. See Note 23 - Divested Business and Discontinued Operations for further details of the divestiture. The following table summarizes the total estimated acquisition consideration (in thousands): Cash consideration paid to AppliedMicro common stockholders $ 287,060 Common stock issued (9,544,125 shares of our common stock at $47.53 per share) 453,632 Equity consideration for vested "in-the-money" stock options and unvested restricted stock units 2,143 Fair value of the replacement equity awards attributable to pre-acquisition service 9,307 Total consideration paid, less cash acquired $ 752,142 We finalized the purchase accounting during the fiscal quarter ended December 29, 2017. The final purchase price allocation is as follows (in thousands): Final Allocation Current assets $ 69,881 Intangible assets 412,848 Assets held for sale 40,944 Other assets 9,800 Total assets acquired 533,473 Liabilities held for sale 4,444 Other liabilities 18,278 Total liabilities assumed 22,722 Net assets acquired 510,751 Consideration: Cash paid upon closing 230,298 Common stock issued 455,775 Equity instruments issued 9,307 Total consideration $ 695,380 Goodwill $ 184,629 The components of the acquired intangible assets were as follows (in thousands): Included In Assets Held For Sale Included In Retained Business Useful Lives (Years) Developed technology $ 9,600 $ 78,448 7 years Customer relationships — 334,400 14 years $ 9,600 $ 412,848 The following is a summary of AppliedMicro revenue and earnings included in our accompanying Consolidated Statements of Operations for the fiscal year ended September 29, 2017 (in thousands): Amount Revenue $ 110,117 Loss from continuing operations (27,222 ) Loss from discontinued operations (44,599 ) The pro forma statements of operations data for the fiscal year ended September 29, 2017, below, gives effect to the AppliedMicro Acquisition, described above, as if it had occurred at October 2, 2015. These amounts have been calculated after applying our accounting policies and adjusting the results of AppliedMicro to reflect transaction costs, retention compensation expense, the impact of the step-up to the value of acquired inventory, as well as the additional intangible amortization that would have been charged assuming the fair value adjustments had been applied and incurred since October 2, 2015. This pro forma data is presented for informational purposes only and does not purport to be indicative of our future results of operations. Fiscal Year Ended September 29, 2017 Revenue $ 755,728 Loss from continuing operations (104,828 ) Loss from discontinued operations (43,734 ) Acquisition of Assets of Picometrix LLC— On August 9, 2017, we completed the acquisition of certain assets of Picometrix LLC ("Picometrix"), a supplier of optical-to-electrical converters for Cloud Data Center infrastructure (the "Picometrix Acquisition"). We acquired Picometrix in order to expand our business in enterprise and Cloud Data Center applications. The purchase consideration was $33.5 million , comprised of an upfront cash payment of $29.5 million , and $4.0 million placed in escrow for potential satisfaction of certain indemnification obligations that may arise from the closing date through December 15, 2018. For the fiscal years ended September 27, 2019 and September 28, 2018, we recorded no transaction costs. For the fiscal year ended September 29, 2017, we recorded transaction costs of $0.2 million in selling, general and administrative expense. The Picometrix Acquisition was accounted for as an asset purchase business combination, and the operations of Picometrix have been included in our consolidated financial statements since the date of acquisition. We recognized the Picometrix assets acquired based upon the fair value of such assets measured as of the date of acquisition. The aggregate purchase price for the Picometrix assets has been allocated to the tangible and identifiable intangible assets acquired based on their estimated fair value at the date of acquisition. The excess of the purchase price over the fair value of the acquired assets represents cost and revenue synergies specific to the Company, as well as non-capitalizable intangible assets, such as the employee workforce acquired, and has been allocated to goodwill, all of which will be tax deductible. We finalized the purchase accounting during the fiscal quarter ended June 29, 2018. The final purchase price allocation is as follows (in thousands): Final Allocation Current assets $ 6,287 Intangible assets 19,000 Other assets 3,220 Total assets acquired 28,507 Current liabilities 2,311 Other liabilities 465 Total liabilities assumed 2,776 Net assets acquired 25,731 Consideration: Cash paid upon closing, net of cash acquired 33,500 Goodwill $ 7,769 The pro forma financial information for fiscal year 2017, including revenue and net income, is immaterial, and has not been separately presented. Other Acquisitions — On July 31, 2017, we completed the acquisition of certain assets of Antario Technologies, Inc. ("Antario") a privately-held company based in Taiwan and in California. The total cash consideration was approximately $5.8 million , of which $4.8 million was paid upon closing, and approximately $1.0 million was withheld for potential satisfaction of certain indemnification obligations that may arise from the closing date through July 31, 2018. We finalized the purchase accounting during the fiscal quarter ended December 29, 2017, which resulted in goodwill of $1.6 million and intangible assets, including acquired technology and customer relationships, of $4.1 million . The Antario transaction was accounted for as an asset purchase business combination and the operations have been included in our consolidated financial statements since the acquisition date. Pro forma financial disclosures are not presented herein as the financial results of Antario are considered immaterial. On May 26, 2017, we completed the acquisition of Triple Play Communications Corporation ("TPC") a privately-held company based in Melbourne, Florida. The total cash consideration was approximately $2.6 million , of which $2.2 million was paid upon closing, and approximately $0.4 million was withheld for potential satisfaction of certain indemnification obligations from the closing date through November 23, 2018. We finalized the purchase accounting during the fiscal quarter ended December 29, 2017, which resulted in goodwill of $3.7 million and intangible assets, including customer relationships, of $0.2 million . TPC was accounted for as a stock purchase business combination and the operations have been included in our consolidated financial statements since the acquisition date. Pro forma financial disclosures are not presented herein as the financial results of TPC are considered immaterial. |
Revenue
Revenue | 12 Months Ended |
Sep. 27, 2019 | |
Revenue [Abstract] | |
Revenue | REVENUE Disaggregation of Revenue We disaggregate revenue from contracts with customers by markets and geography, as we believe it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The following tables present our revenue disaggregated by markets and geography (in thousands): Fiscal Years 2019 2018 2017 Telecom $ 180,938 $ 222,940 $ 340,022 Data Center 114,132 162,098 172,481 Industrial & Defense 204,638 185,360 186,269 Total $ 499,708 $ 570,398 $ 698,772 Fiscal Years Revenue by Geographic Region 2019 2018 2017 United States $ 239,510 $ 272,951 $ 265,038 China 132,329 159,763 206,136 Asia Pacific, excluding China (1) 80,136 79,581 170,826 Other Countries (2) 47,733 58,103 56,772 Total $ 499,708 $ 570,398 $ 698,772 (1) Asia Pacific represents Taiwan, Japan, Singapore, India, Thailand, South Korea, Australia, Malaysia, New Zealand and the Philippines. (2) No international country or region represented greater than 10% of the total revenue as of the dates presented, other than China and the Asia Pacific region as presented above. Contract Balances We record contract assets or contract liabilities depending on the timing of revenue recognition, billings and cash collections on a contract-by-contract basis. Our contract liabilities primarily relate to deferred revenue, including advance consideration received from customers for contracts prior to the transfer of control to the customer, and therefore revenue is recognized upon delivery of products and services or as the services are performed. The following table presents the changes in contract liabilities during fiscal year 2019 (in thousands): September 27, 2019 September 28, 2018 $ Change % Change Contract liabilities $ 10,653 $ 7,757 $ 2,896 37 % As of September 27, 2019 , approximately $8.5 million of our contract liabilities were recorded as other long-term liabilities on our Balance Sheet with the remainder recorded as deferred revenue. The increase in contract liabilities during the fiscal year ended September 27, 2019 was primarily from the deferral of revenue for funds received prior to when certain of our customers obtain control of the product or services, partially offset by the recognition of $7.0 million associated with a license contract. During the fiscal year ended September 27, 2019 , we recognized the following net sales as a result of changes in the contract liabilities balance (in thousands): September 27, 2019 Net revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period $ 7,646 |
Investments
Investments | 12 Months Ended |
Sep. 27, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | . INVESTMENTS All investments are short-term in nature and are invested in corporate bonds and commercial paper, and are classified as available-for-sale. The amortized cost, gross unrealized holding gains or losses and fair value of our available-for-sale investments by major investments type as of September 27, 2019 and September 28, 2018 are summarized in the tables below (in thousands): September 27, 2019 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value Corporate bonds $ 29,578 $ 112 $ (93 ) $ 29,597 Commercial paper 71,646 1 (18 ) 71,629 Total investments $ 101,224 $ 113 $ (111 ) $ 101,226 September 28, 2018 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value Corporate bonds $ 28,731 $ — $ (460 ) $ 28,271 Commercial paper 69,966 — (16 ) 69,950 Total investments $ 98,697 $ — $ (476 ) $ 98,221 The contractual maturities of available-for-sale investments were as follows (in thousands): September 27, 2019 Less than 1 year $ 75,233 Over 1 year 25,993 Total investments $ 101,226 Available-for-sale investments are reported at fair value and as such, their associated unrealized gains and losses are reported as a separate component of stockholders’ equity within accumulated other comprehensive income (loss). We have determined that the gross unrealized losses on available for sale securities at September 27, 2019 and September 28, 2018 are temporary in nature. We review our investments to identify and evaluate investments that have indications of possible impairment. The techniques used to measure the fair value of our investments are described in Note 6 - Fair Value . Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and our intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. Substantially all of our fixed income securities are rated investment grade or better. We received proceeds from sales of available-for-sale securities of $173.0 million and $100.4 million during the fiscal years 2019 and 2018 , respectively. Such sales resulted in gross realized gains of $0.2 million and less than $0.1 million and gross realized losses of $0.2 million and $0.3 million during the fiscal years ended September 27, 2019 and September 28, 2018 , respectively, which have been recorded within other expense. Other Investments — As of September 27, 2019 and September 28, 2018 we held two no n-marketable equity investments classified as other long-term investments. One of these is a minority investment in a preferred stock ownership of a privately held manufacturing corporation with preferred liquidation rights over other equity shares. This investment had a value of $5.0 million at the date of purchase and approximates the then current fair value. Since we do not have the ability to exercise significant influence or control over the investee we account for this investment at cost, which we evaluate for impairment at each balance sheet date and through September 27, 2019 no impairment has been recorded for this investment. In addition, we have a minority investment of less than 20.0% of the outstanding equity of a privately held limited liability corporation ("Compute"). This investment was acquired in conjunction with the divestiture of the Compute business during the fiscal quarter ended December 29, 2017, had an initial value of $36.5 million and is accounted for using the equity method. We have no obligation to provide further funding to Compute. This investment value is updated quarterly based on our proportionate share of the losses or earnings of Compute, as well as any changes in Compute's equity, utilizing the equity method. During fiscal years 2019 and 2018 , we recorded $7.5 million and $10.4 million of losses associated with this investment as other expense in our Consolidated Statements of Operations. The carrying value of this investment was $18.6 million and $26.1 million as of September 27, 2019 and September 28, 2018 |
Fair Value
Fair Value | 12 Months Ended |
Sep. 27, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE We group our financial assets and liabilities measured at fair value on a recurring basis in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets) or model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data. Level 3 - Fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including assumptions and judgments made by us. Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis We measure certain assets and liabilities at fair value on a recurring basis such as our financial instruments. There have been no transfers between Level 1, 2 or 3 assets or liabilities during the fiscal year ended September 27, 2019 . Assets and liabilities measured at fair value on a recurring basis consist of the following (in thousands): September 27, 2019 Fair Value Active Markets for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Assets Money market funds $ 261 $ 261 $ — $ — Commercial paper 71,629 — 71,629 — Corporate bonds 29,597 — 29,597 — Total assets measured at fair value $ 101,487 $ 261 $ 101,226 $ — Liabilities Warrant liability 12,364 — — 12,364 Total liabilities measured at fair value $ 12,364 $ — $ — $ 12,364 September 28, 2018 Fair Value Active Markets for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Assets Money market funds $ 253 $ 253 $ — $ — Commercial paper 69,950 — 69,950 — Corporate bonds 28,271 — 28,271 — Total assets measured at fair value $ 98,474 $ 253 $ 98,221 $ — Liabilities Contingent consideration $ 585 $ — $ — $ 585 Warrant liability 13,129 — — 13,129 Total liabilities measured at fair value $ 13,714 $ — $ — $ 13,714 The quantitative information utilized in the fair value calculation of our Level 3 liabilities are as follows: Liabilities Valuation Technique Unobservable Input September 27, 2019 September 28, 2018 Contingent consideration Discounted cash flow Discount rate N/A 9.2% Probability of achievement N/A 90% Timing of cash flows N/A 1 month Warrant liability Black-Scholes model Volatility 61.4% 60.7% Discount rate 1.71% 2.81% Expected life 1.2 years 2.2 years Exercise price $14.05 $14.05 Stock price $21.68 $20.60 Dividend rate —% —% The fair values of the contingent consideration liabilities were estimated based upon a risk-adjusted present value of the probability-weighted expected payments by us. Specifically, we considered base, upside and downside scenarios for the operating metrics upon which the contingent payments are to be based. Probabilities were assigned to each scenario and the probability-weighted payments were discounted to present value using risk-adjusted discount rates. The changes in assets and liabilities with inputs classified within Level 3 of the fair value hierarchy consist of the following (in thousands): Fiscal Year 2019 September 28, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases and Issuances Sales and Settlements September 27, Contingent consideration $ 585 $ 65 $ — $ (650 ) $ — Warrant liability $ 13,129 $ (765 ) $ — $ — $ 12,364 Fiscal Year 2018 September 29, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases and Issuances Sales and Settlements September 28, Contingent consideration $ 1,679 $ (394 ) $ — $ (700 ) $ 585 Warrant liability $ 40,775 $ (27,646 ) $ — $ — $ 13,129 Fiscal Year 2017 September 30, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases and Issuances Sales and Settlements September 29, Contingent consideration $ 848 $ 180 $ 1,701 $ (1,050 ) $ 1,679 Warrant liability $ 38,253 $ 2,522 $ — $ — $ 40,775 |
Accounts Receivables Allowances
Accounts Receivables Allowances | 12 Months Ended |
Sep. 27, 2019 | |
Receivables [Abstract] | |
Accounts Receivables Allowances | ACCOUNTS RECEIVABLES ALLOWANCES Summarized below is the activity in our accounts receivable allowances including compensation credits and doubtful accounts as follows (in thousands): Fiscal Year 2019 2018 2017 Balance - beginning of year $ 6,795 $ 9,410 $ 3,279 Provision, net 11,989 15,465 29,512 Charge-offs (13,737 ) (18,080 ) (23,381 ) Balance - end of year $ 5,047 $ 6,795 $ 9,410 The balances at the end of fiscal years 2019 , 2018 and 2017 are comprised primarily of compensation credits of $4.5 million , $6.3 million and $8.9 million , respectively. |
Inventories
Inventories | 12 Months Ended |
Sep. 27, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories consist of the following (in thousands): September 27, 2019 September 28, 2018 Raw materials $ 59,184 $ 71,408 Work-in-process 13,799 13,466 Finished goods 34,897 37,963 Total $ 107,880 $ 122,837 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Sep. 27, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following (in thousands): September 27, September 28, Construction in process 24,848 49,661 Machinery and equipment 175,696 174,638 Leasehold improvements 12,962 14,984 Furniture and fixtures 3,716 2,306 Capital lease assets 46,496 19,380 Computer equipment and software 18,116 17,317 Total property and equipment 281,834 278,286 Less accumulated depreciation and amortization (149,187 ) (128,363 ) Property and equipment — net $ 132,647 $ 149,923 Depreciation and amortization expense related to property and equipment for fiscal years 2019 , 2018 and 2017 was $ 29.7 million , $30.7 million and $27.3 million , respectively. Accumulated depreciation on capital lease assets for fiscal years 2019 and 2018 was $5.3 million and $3.2 million , respectively. See Note 17 - Impairments and Note 15 - Restructurings for information related to property and equipment impaired during fiscal year 2019. |
Debt
Debt | 12 Months Ended |
Sep. 27, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT As of September 27, 2019 , we are party to a credit agreement dated as of May 8, 2014 with a syndicate of lenders and Goldman Sachs Bank USA ("Goldman Sachs"), as administrative agent (as amended on February 13, 2015, August 31, 2016, March 10, 2017, May 19, 2017, May 2, 2018 and May 9, 2018, the “Credit Agreement”). As of September 27, 2019 , the Credit Agreement consisted of term loans with an original principal amount of $700.0 million ("Term Loans") and a revolving credit facility with an aggregate, undrawn borrowing capacity of $160.0 million ("Revolving Facility"). The Revolving Facility will mature in November 2021 and the Term Loans will mature in May 2024 and bear interest at: (i) for LIBOR loans for any interest period, a rate per annum equal to the LIBOR rate as determined by the administrative agent, plus an applicable margin of 2.25% ; and (ii) for base rate loans, a rate per annum equal to the greater of (a) the prime rate quoted in the print edition of the Wall Street Journal, Money Rates Section, (b) the federal funds rate plus one-half of 1.00% and (c) the LIBOR rate applicable to a one-month interest period plus 1.00% (but, in each case, not less than 1.00% ), plus an applicable margin of 1.25% . All principal amounts outstanding and interest rate information as of September 27, 2019 , for the Credit Agreement were as follows (in thousands, except rate data): Principal Outstanding LIBOR Rate Margin Effective Interest Rate Term loans $672,971 2.11% 2.25% 4.36% As of September 27, 2019 , approximately $8.0 million of deferred financing costs remain unamortized, of which $7.4 million is related to the Term Loans and is recorded as a direct reduction of the recognized debt liabilities in our accompanying Consolidated Balance Sheet, and $0.6 million is related to the Revolving Facility and is recorded in other long-term assets in our accompanying Consolidated Balance Sheet. The Term Loans and Revolving Facility are secured by a first priority lien on substantially all of our assets and provide that we must comply with certain financial and non-financial covenants. The Term Loans are payable in quarterly principal installments of approximately $1.7 million on the last business day of each calendar quarter, with the remainder due on the maturity date. In the event that we divest a business, the net cash proceeds of the divestment are generally required, subject to certain exceptions, to be applied to repayment of outstanding Term Loans except to the extent we reinvest such proceeds in assets useful for our business within 18 months of receiving the proceeds. If we enter into a binding agreement to reinvest such proceeds within 18 months of receiving them, we have until the later of 18 months following our receipt of the proceeds and six months following the date of such agreement to complete the reinvestment. As of September 27, 2019 , we had $160.0 million of borrowing capacity under our Revolving Facility. As of September 27, 2019 , the following remained outstanding on the Term Loans: September 27, 2019 Principal balance $ 672,971 Unamortized discount (3,414 ) Unamortized deferred financing costs (7,400 ) Total term loans 662,157 Current portion 6,885 Long-term, less current portion $ 655,272 As of September 27, 2019 , the minimum principal payments under the Term Loans in future fiscal years were as follows (in thousands): Fiscal year ending: Amount 2020 $ 6,885 2021 6,885 2022 6,885 2023 6,885 2024 645,431 Total $ 672,971 The fair value of the Term Loans was estimated to be approximately $585.5 million as of September 27, 2019 and was determined using Level 2 inputs, including a quoted price from a bank. |
Capital Lease and Financing Obl
Capital Lease and Financing Obligations (Notes) | 12 Months Ended |
Sep. 27, 2019 | |
Capital Lease and Financing Obligations [Abstract] | |
Capital Leases in Financial Statements of Lessee Disclosure | . CAPITAL LEASE AND FINANCING OBLIGATIONS Corporate Facility Financing Obligation On December 28, 2016, we entered into three lease agreements including: (1) a 20 -year leaseback of the facility located at 100 Chelmsford Street, (2) a 20 -year build-to-suit lease arrangement for the construction and subsequent lease back of a new facility to be located at 144 Chelmsford Street, and (3) a 14 -year building lease renewal of an adjacent facility at 121 Hale Street (collectively, the "Lowell Leases"). We account for the Lowell Leases as a single unit of accounting under the financing method. As of October 1, 2018, the construction of the facility at 144 Chelmsford Street was completed, the building was placed in service and the associated lease term commenced. We calculated a lease obligation based on the future minimum lease payments discounted at 7.2% . The discount rate represents the estimated incremental borrowing rate over the lease term of 20 years. The minimum lease payments are recorded as interest expense and in part as a payment of principal reducing the lease obligation. The real property assets in the transaction remain on the Consolidated Balance Sheets and continue to be depreciated over their remaining useful lives. As of September 27, 2019 and September 28, 2018 , the outstanding lease obligations associated with the Lowell Leases included in leases payable in the Consolidated Balance Sheets were $28.2 million and $28.3 million , respectively. Additionally, we have capital equipment lease obligations, of which approximately $2.3 million and $1.2 million were outstanding as of September 27, 2019 and September 28, 2018 , respectively. As of September 27, 2019 , future minimum payments under capital lease obligations related to all of our in service leases were as follows (in thousands): Fiscal year ending: Amount 2020 $ 3,299 2021 3,343 2022 2,884 2023 2,816 2024 2,853 Thereafter 39,927 Total minimum capital lease payments $ 55,122 Less amount representing interest (26,241 ) Present value of net minimum capital lease payments $ 28,881 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 27, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS We established a defined contribution savings plan under Section 401(k) of the Internal Revenue Code of 1986, as amended on October 1, 2009 ("401(k) Plan"). The 401(k) Plan follows a calendar year, covers substantially all U.S. employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pretax basis, subject to legal limitations. Our contributions to the 401(k) Plan may be made at the discretion of the board of directors. During the fiscal year ended September 27, 2019 , we contributed $2.6 million to our 401(k) Plan for calendar year 2018 . As of September 27, 2019 there were no contributions made by us to the 401 (k) Plan for calendar year 2019 . During the fiscal year ended September 28, 2018 , we contributed $2.7 million to our 401(k) Plan for calendar year 2017 . During the fiscal year ended September 29, 2017 , we contributed $2.4 million to our 401(k) Plan for calendar year 2016 . Our employees located in foreign jurisdictions meeting minimum age and service requirements participate in defined contribution plans whereby participants may defer a portion of their annual compensation on a pretax basis, subject to legal limitations. Company contributions to these plans are discretionary and vary per region. We expensed contributions of $1.1 million , $1.2 million and $1.3 million for fiscal years 2019 , 2018 and 2017 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Sep. 27, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities consist of the following (in thousands): September 27, September 28, Compensation and benefits $ 20,455 $ 22,935 Distribution costs 7,797 10,670 Product warranty 3,273 5,756 Restructuring costs 2,527 89 Professional fees 1,554 1,875 Rent and utilities 701 1,660 Income taxes payable 1,233 415 Contingent consideration — 585 Purchase price holdback — 375 Other 2,368 5,585 Total $ 39,908 $ 49,945 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 27, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Operating Leases —We have non-cancelable operating lease agreements for office, research and development and manufacturing space in the United States and foreign locations. We also have operating leases for certain equipment and services in the United States and foreign jurisdictions. These lease agreements expire at various dates through 2029 , and certain agreements contain provisions for extension at substantially the same terms as currently in effect. Lease escalation clauses, rent abatements and/or concessions, such as rent holidays and landlord or tenant incentives or allowances, are typically included in the determination of straight-line rent expense over the lease term. Future minimum lease payments for the next five fiscal years as of September 27, 2019 , are as follows (in thousands): Fiscal year ending: Amount 2020 $ 9,987 2021 9,233 2022 7,447 2023 6,061 2024 5,564 Thereafter 16,437 Total minimum lease payments $ 54,729 Rent expense incurred under non-cancelable operating leases was $9.7 million , $9.5 million and $10.9 million in fiscal years 2019 , 2018 and 2017 , respectively. Asset Retirement Obligations —We are obligated under certain facility leases to restore those facilities to the condition in which we or our predecessors first occupied the facilities. We are required to remove leasehold improvements and equipment installed in these facilities prior to termination of the leases. As of the end of fiscal years 2019 and 2018 , the estimated costs for the removal of these assets are recorded as asset retirement obligations in other long-term liabilities were $1.8 million and $1.8 million , respectively. Purchase Commitments —As of September 27, 2019 , we had outstanding non-cancelable purchase commitments aggregating to $40.6 million primarily for purchases of capital equipment, services and inventory supply arrangements. Litigation —From time to time we may be subject to commercial disputes, employment issues, claims by other companies in the industry that we have infringed their intellectual property rights and other similar claims and litigations. Any such claims may lead to future litigation and material damages and defense costs. We were not involved in any material pending legal proceedings during the year ended September 27, 2019 |
Restructurings
Restructurings | 12 Months Ended |
Sep. 27, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructurings | RESTRUCTURINGS We have periodically implemented restructuring actions in connection with broader plans to reduce staffing, our internal manufacturing footprint and overall operating costs. The restructuring expenses are primarily comprised of direct and incremental costs related to headcount reductions including severance and outplacement fees for the terminated employees, as well as facility closure costs. The following is a summary of the restructuring charges incurred for the periods presented (in thousands): Fiscal Years 2019 2018 2017 Employee-related expenses $ 8,084 $ 2,789 $ 2,744 Facility-related expenses 11,459 3,476 — Total restructuring expenses $ 19,543 $ 6,265 $ 2,744 The following is a summary of the costs incurred and remaining balances included in accrued expenses related to restructuring actions taken (in thousands): Employee-Related Expense (1) Facility-Related Expense (2) Total Balance - September 29, 2017 $ 627 $ — $ 627 Charges 2,789 3,476 6,265 Charges paid/settled (3,327 ) (3,476 ) (6,803 ) Balance - September 28, 2018 $ 89 $ — $ 89 Charges 8,084 11,459 19,543 Charges paid/settled (6,624 ) (10,481 ) (17,105 ) Balance - September 27, 2019 $ 1,549 $ 978 $ 2,527 (1) Primarily includes severance charges associated with the reduction of our workforce in certain facilities. (2) Primarily includes activities associated with the closure of certain facilities, including any associated asset impairments and contract termination costs. Long Beach, Belfast and Sydney Plan During the fiscal quarter ended December 29, 2017, we initiated plans to restructure and close our facilities in Long Beach, California, Belfast, United Kingdom and Sydney, Australia(the “Long Beach, Belfast and Sydney Plan”). The operations from the Long Beach facility were consolidated into our other California locations in order to achieve operational synergies. The Belfast and Sydney facilities were closed as we discontinued certain product development activities that were performed in those locations. During the fiscal year ended September 28, 2018, we incurred $6.3 million , including $2.8 million of employee-related costs and $3.5 million of facility-related costs and the charges paid were $6.2 million . During the fiscal year ended September 27, 2019 we incurred no charges for this plan. This action was complete in fiscal 2018 and no further costs will be incurred. Details of the Long Beach, Belfast and Sydney Plan activities during fiscal years ended September 28, 2018 and September 27, 2019 are as follows: Employee-Related Expense Facility-Related Expense Total Balance - September 29, 2017 $ — $ — $ — Charges 2,789 3,476 6,265 Charges paid/settled (2,700 ) (3,476 ) (6,176 ) Balance - September 28, 2018 $ 89 $ — $ 89 Charges — — — Charges paid/settled (89 ) — (89 ) Balance - September 27, 2019 $ — $ — $ — Ithaca Plan During the fiscal quarter ended December 28, 2018, we commenced a plan to exit certain production and product lines, primarily related to certain production facilities located in Ithaca, New York (the "Ithaca Plan"). For these facilities, we incurred $5.5 million of restructuring charges in the fiscal year ended September 27, 2019, including $1.5 million of employee-related costs and $4.0 million of facility-related costs. This action was complete in fiscal 2019 and no further costs will be incurred. The remaining charges are expected to be paid in the first quarter of fiscal year 2020. Details of the Ithaca Plan activities during fiscal year ended September 27, 2019 are as follows: Employee-Related Expense Facility-Related Expense Total Balance - September 28, 2018 $ — $ — $ — Charges 1,481 3,969 5,450 Charges paid/settled (1,468 ) (3,899 ) (5,367 ) Balance - September 27, 2019 $ 13 $ 70 $ 83 Design Facilities Plan During the fiscal quarter ended March 29, 2019, we committed to a plan to exit certain design facilities and activities (the "Design Facilities Plan"). We incurred restructuring charges of $2.5 million in the fiscal year ended September 27, 2019, including $0.3 million of employee-related costs and $2.2 million of facility-related costs. This action was complete in fiscal 2019 and no further costs will be incurred. The remaining charges are expected to be paid in fiscal year 2020. Details of the Design Facilities Plan activities during fiscal year ended September 27, 2019 are as follows: Employee-Related Expense Facility-Related Expense Total Balance - September 28, 2018 $ — $ — $ — Charges 338 2,190 2,528 Charges paid/settled (338 ) (1,739 ) (2,077 ) Balance - September 27, 2019 $ — $ 451 $ 451 2019 Plan During the fiscal quarter ended June 28, 2019, we committed to a plan to strategically realign, streamline and improve certain of our business and operations, including reducing our workforce by approximately 250 employees and exiting seven development facilities in France, Japan, the Netherlands, Florida, Massachusetts, New Jersey and Rhode Island (the "2019 Plan"). We also committed to reducing certain development activities for one of our product lines. Additionally, we decided to no longer invest in the design and development of optical modules and subsystems for Data Center applications. Total restructuring charges expected to be incurred in connection with this plan are approximately $14.1 million to $15.0 million . We incurred restructuring charges of $11.6 million in the fiscal year ended September 27, 2019 under the 2019 Plan, including $6.3 million of employee-related costs, $4.0 million of impairment expense for fixed assets and $1.3 million of other facility-related costs. The remaining charges are expected to be paid in fiscal year 2020. We expect to incur restructuring costs of approximately $2.5 million to $3.4 million through fiscal year 2020 as we complete this restructuring action, including approximately $2.6 million of employee-related costs and $0.8 million of facility-related costs. Details of the 2019 Plan activities during fiscal year ended September 27, 2019 are as follows: Employee-Related Expense Facility-Related Expense Total Balance - September 28, 2018 $ — $ — $ — Charges 6,265 5,300 11,565 Charges paid/settled (4,729 ) (4,843 ) (9,572 ) Balance at September 27, 2019 $ 1,536 $ 457 $ 1,993 |
Product Warranties
Product Warranties | 12 Months Ended |
Sep. 27, 2019 | |
Guarantees [Abstract] | |
Product Warranties | PRODUCT WARRANTIES We establish a product warranty liability at the time of revenue recognition. Product warranties generally have terms of 12 months and cover nonconformance with specifications and defects in material or workmanship. For sales to distributors, our warranty generally begins when the product is resold by the distributor. The liability is based on estimated costs to fulfill customer product warranty obligations and utilizes historical product failure rates. Should actual warranty obligations differ from estimates, revisions to the warranty liability may be required. Product warranty liability activity is as follows (in thousands): Fiscal Years 2019 2018 2017 Balance — beginning of year $ 5,756 $ 3,672 $ 1,039 (Divested)/acquired — (49 ) 952 Provisions/(expense) (3,053 ) 1,865 1,737 Direct charges/(payments) 570 268 (56 ) Balance — end of year $ 3,273 $ 5,756 $ 3,672 |
Impairments
Impairments | 12 Months Ended |
Sep. 27, 2019 | |
Impairments [Abstract] | |
Impairments | IMPAIRMENTS During fiscal year 2019, we initiated a plan to strategically realign, streamline and improve our operations, including reducing our workforce and exiting certain product offerings and research and development facilities. See Note 15 - Restructurings , for additional information about the 2019 Plan. These activities led us to reassess our previous estimates for expected future revenue growth. We performed impairment analyses to determine whether our goodwill and long-lived assets, comprised of definite-lived intangible assets and property, plant and equipment, were recoverable. During the fiscal quarter ended June 28, 2019, we performed a goodwill impairment test for our consolidated reporting unit. We calculated the fair value of our reporting unit using market capitalization and compared its fair value to its carrying amount, including goodwill. The fair value exceeded the carrying amount, therefore we determined that goodwill of the reporting unit was not impaired. Based on the estimated undiscounted cash flow assessment for long-lived assets, we determined that for an asset group, the cash flows were not sufficient to recover the carrying value of the long-lived assets over their remaining useful lives. Accordingly, we recorded impairment charges of $217.5 million and $33.2 million to our customer relationship intangible assets and technology intangible assets, respectively, in the fiscal quarter ended June 28, 2019, based on the difference between the fair value and the carrying value of the long-lived assets. We will continue to monitor for events or changes in business circumstances that may indicate that the remaining carrying value of the asset group may not be recoverable. We used the income approach to determine the fair value of the definite-lived intangible assets and the cost approach to determine the fair value of our property, plant and equipment. Additionally, in connection with the 2019 Plan, we determined that certain intangible assets were abandoned and would not have a future benefit. Accordingly, we recorded impairment charges of $2.4 million and $3.9 million to our customer relationship intangible assets and technology intangible assets, respectively, during fiscal year 2019 . During fiscal year 2019, we also abandoned equipment recorded as construction in process. Accordingly, we recorded impairment charges of $7.8 million to reflect the estimated salvage value of the equipment. Total impairment charges recorded on intangible assets and assets recorded as construction in process for fiscal year 2019 were $264.8 million . During fiscal year 2018, we recorded impairment charges of $6.6 million related to property and equipment and other assets designated for future use with ZTE. During fiscal year 2017, we completed an IPR&D project and placed the acquired technology into service. Prior to placing the technology into service we performed an impairment assessment, at which time we determined that the value of the technology was impaired by $4.4 million , which was expensed in our fiscal fourth quarter of 2017. The remaining $3.6 million was placed in service as acquired technology. See Note 15 - Restructurings for information related to property and equipment impaired as part of our restructuring actions. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Sep. 27, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS Amortization expense related to intangible assets is as follows (in thousands): Fiscal Years 2019 2018 2017 Cost of revenue $ 29,847 $ 33,429 $ 30,286 Selling, general and administrative 44,872 48,265 35,456 Total $ 74,719 $ 81,694 $ 65,742 Intangible assets consist of the following (in thousands): September 27, September 28, Acquired technology $ 179,682 $ 251,673 Customer relationships 245,870 518,234 Trade name, indefinite lived 3,400 3,400 Total 428,952 773,307 Less accumulated amortization (247,724 ) (260,522 ) Intangible assets — net $ 181,228 $ 512,785 As of September 27, 2019 , our estimated amortization of our intangible assets in future fiscal years, was as follows (in thousands): 2020 2021 2022 2023 2024 Thereafter Amortization expense $ 50,330 46,213 33,433 26,048 15,410 6,394 Accumulated amortization for the acquired technology and customer relationships was $134.8 million and $112.9 million , respectively, as of September 27, 2019 , and $140.0 million and $120.5 million , respectively, as of September 28, 2018 . A summary of the activity in intangible assets and goodwill follows (in thousands): Gross Intangible Assets Total Intangibles Acquired Customer Trade Name Total Goodwill Balance at September 29, 2017 $ 811,703 $ 251,655 $ 556,648 $ 3,400 $ 313,765 Allocation to divested business (39,285 ) — (39,285 ) — (2,560 ) Fair value adjustment — — — — 2,790 Currency translation adjustments 889 18 871 — 81 Balance at September 28, 2018 773,307 251,673 518,234 3,400 314,076 Currency translation adjustments 270 270 — — 651 Impairments of intangible assets (344,625 ) (72,261 ) (272,364 ) — — Balance at September 27, 2019 $ 428,952 $ 179,682 $ 245,870 $ 3,400 $ 314,727 In connection with the impairment of certain customer relationships and acquired technology intangible assets in 2019 , we revised the useful lives of these intangible assets to reflect the estimated period over which these assets are expected to contribute to future cash flows, resulting in weighted-average amortization periods for our customer relationships and acquired technology of nine years and seven years , respectively. See Note 17 - Impairments , for additional information related to the impairment of our intangible assets. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 27, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Deferred income taxes reflect the net effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. The components of our deferred tax assets and liabilities are as follows (in thousands): September 27, September 28, Deferred tax assets (liabilities): Federal and foreign net operating losses and credits $ 263,199 $ 321,982 Intangible assets 9,887 (94,929 ) Property and equipment (1,473 ) (6,293 ) Other non-current deferred tax assets 16,933 13,850 Deferred compensation — 3,810 Deferred gain — 6,575 Interest 7,170 — Valuation allowance (252,536 ) (243,112 ) Total deferred tax asset $ 43,180 $ 1,883 As of September 27, 2019 , we had $923.4 million of gross federal net operating loss ("NOL") carryforwards consisting of $479.2 million relating to the AppliedMicro Acquisition, $158.9 million relating to our acquisition of Mindspeed Technologies, Inc. in 2013, $26.2 million relating to our acquisition of BinOptics Corporation in 2014 and $259.1 million relating to losses generated by MACOM. The federal NOL carryforwards will expire at various dates through 2037 for losses generated prior to the tax period ended September 28, 2018. For losses generated during the tax period ended September 28, 2018 and future years, the NOL carryforward period is infinite. The reported net operating loss carryforward includes any limitation under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, which applies to an ownership change as defined under Section 382. The domestic and foreign income (loss) from continuing operations before taxes were as follows (in thousands): Fiscal Years 2019 2018 2017 United States $ (458,617 ) $ (145,851 ) $ (111,432 ) Foreign 35,464 (9,384 ) 61,927 (Loss) income from operations before income taxes $ (423,153 ) $ (155,235 ) $ (49,505 ) The components of the (benefit) provision for income taxes are as follows (in thousands): Fiscal Years 2019 2018 2017 Current: Federal $ 70 $ (6,876 ) $ 100 State 36 (160 ) 225 Foreign 876 1,642 7,307 Current provision (benefit) 982 (5,394 ) 7,632 Deferred: Federal (21,560 ) 75,428 (42,637 ) State 12,907 (15,526 ) (4,037 ) Foreign (41,108 ) (24,652 ) (466 ) Change in valuation allowance 9,424 (51,329 ) 140,419 Deferred (benefit) provision (40,337 ) (16,079 ) 93,279 Total (benefit) provision $ (39,355 ) $ (21,473 ) $ 100,911 We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making this determination, we consider available positive and negative evidence and factors that may impact the valuation of our deferred tax asset including results of recent operations, future reversals of existing taxable temporary differences, projected future taxable income, and tax-planning strategies. A significant piece of objective negative evidence evaluated was the cumulative U.S. loss incurred over the three-year period ended September 27, 2019 which we believe limited our ability to consider other subjective evidence, such as our projections for future growth. Certain transaction- and integration-related expenses incurred in the U.S., associated primarily with the AppliedMicro Acquisition during the three months ended March 31, 2017, resulted for the first time in significant negative objective evidence in the form of adjusted cumulative losses in the U.S. over the past three-year period. This resulted in our determination that there was not sufficient objectively verifiable positive evidence to offset this negative objective evidence and we concluded that a full valuation allowance totaling $93.5 million was required for our U.S. deferred tax assets as of September 29, 2017. In addition, a full valuation allowance was established against the U.S. deferred tax assets acquired in connection with the AppliedMicro Acquisition. The $252.5 million of valuation allowance as of September 27, 2019 relates primarily to federal and state NOLs, tax credit carryforwards and a partial valuation allowance on tax credits in Canada of $19.0 million whose recovery is not considered more likely than not. The $243.1 million of valuation allowance as of September 28, 2018 related primarily to federal and state NOLs, tax credit carryforwards and a partial valuation allowance on tax credits in Canada of $13.6 million whose recovery is not considered more likely than not. The change during the fiscal year ended September 27, 2019 of $9.4 million primarily relates to the reduction of our NOLs due to section 382 limitations, the changes in our temporary differences, and the lower U.S federal tax rate. Our effective tax rates differ from the federal and statutory rate as follows: Fiscal Years 2019 2018 2017 Federal statutory rate 21.0% 24.5% 35.0% Foreign rate differential 1.6 5.1 31.9 State taxes net of federal benefit 0.9 0.8 0.2 Warrant liabilities — 4.4 (1.8) Change in valuation allowance (2.4) 34.0 (270.0) Research and development credits 1.4 9.0 12.8 Provision to return adjustments 0.3 8.3 (4.0) Section 382 adjustment (19.3) — — Nondeductible compensation expense (0.6) 1.4 (4.1) Global Intangible Low Taxed Income (2.9) — — Nondeductible legal fees — 0.9 (3.9) 2017 tax reform — (73.7) — Intra-entity license transfer 9.4 — — Other permanent differences (0.1) (0.9) 0.1 Effective income tax rate 9.3% 13.8% (203.8)% For fiscal years 2019 , 2018 and 2017 , the effective tax rates on $423.2 million , $155.2 million and $49.5 million , respectively, of pre-tax loss from continuing operations were 9.3% , 13.8% and (203.8)% , respectively. For fiscal year 2019, the effective tax rate was primarily impacted by a change in our NOL carryforward due to an adjustment in our Section 382 limitation from a prior period acquisition and the immediate recognition of the current and deferred income tax effects totaling $39.8 million from an intra-entity transfer of a license for intellectual property to a higher taxed jurisdiction that received a tax basis step-up. For fiscal year 2018, the effective tax rate was primarily impacted by the Tax Cuts and Jobs Act (the "Tax Act"). The effective income tax rates for fiscal years 2019 , 2018 and 2017 were also impacted by a lower income tax rate in many foreign jurisdictions in which our foreign subsidiaries operate, changes in valuation allowance, research and development tax credits, and a fair market value adjustment of warrant liabilities. All earnings of foreign subsidiaries, other than our M/A-COM Technology Solutions International Limited Cayman Islands subsidiary ("Cayman Islands subsidiary"), are considered indefinitely reinvested for the periods presented. During fiscal year 2019 we changed our position for our Cayman Islands subsidiary to no longer have its earnings permanently reinvested. Although a foreign subsidiary would typically have to accrue for foreign withholding tax liabilities associated with undistributed earnings, Cayman Islands has no withholding tax under domestic law, therefore, we did not accrue for foreign withholding tax. During fiscal year 2019 we finalized our calculation of the one-time deemed repatriation of gross foreign earnings and profits, totaling $156.8 million , which resulted in approximately $86.7 million in U.S. taxable income for the year ended September 28, 2018 with Grand Cayman and Ireland accounting for $59.7 million and $25.6 million , respectively. Due to the fact that we are in a full U.S. valuation allowance, this one-time deemed repatriation had no impact on our tax expense for fiscal year 2018. Our fiscal year 2019 tax provision incorporated changes required by the Tax Act. Some of these changes include a new limitation on the deductible interest expense, inclusion of Global Intangible Low Taxed Income earned by controlled foreign corporations, computation of the new base erosion anti-abuse minimum tax, repealing the performance-based compensation exception to section 162(m) and revising the definition of a covered employee. Activity related to unrecognized tax benefits is as follows (in thousands): Amount Balance - September 29, 2017 (1,670 ) Additions based on tax positions — Reductions based on tax positions 1,370 Balance - September 28, 2018 $ (300 ) Additions based on tax positions — Reductions based on tax positions — Balance at September 27, 2019 $ (300 ) The balance of the unrecognized tax benefit as of September 27, 2019 , is included in other long-term liabilities in the accompanying Consolidated Balance Sheets. The entire balance of unrecognized tax benefits, if recognized, will reduce income tax expense. It is our policy to recognize any interest and penalties accrued related to unrecognized tax benefits in income tax expense. During fiscal year 2019 , we did not make any payment of interest and penalties. There was nothing accrued in the Consolidated Balance Sheets for the payment of interest and penalties at September 27, 2019 , as the remaining unrecognized tax benefits would only serve to reduce our current federal and state NOL carryforwards, if ultimately recognized. A summary of the fiscal tax years that remain subject to examination, as of September 27, 2019 , for the Company’s significant tax jurisdictions are: Jurisdiction Tax Years Subject to Examination United States—federal 2015 - forward United States—various states 2015 - forward Ireland 2016 - forward Generally, we are no longer subject to federal income tax examinations for years before 2015, except to the extent of loss and tax credit carryforwards from those years. |
Share - Based Compensation Plan
Share - Based Compensation Plans | 12 Months Ended |
Sep. 27, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share - Based Compensation Plans | SHARE-BASED COMPENSATION PLANS Stock Plans We have three equity incentive plans: the Amended and Restated 2009 Omnibus Stock Plan ("2009 Plan"), the 2012 Omnibus Incentive Plan, as amended ("2012 Plan") and the 2012 Employee Stock Purchase Plan, as amended and restated ("ESPP"). Upon the closing of our initial public offering, all shares that were reserved under the 2009 Plan but not awarded were assumed by the 2012 Plan. No additional awards will be made under the 2009 Plan. Under the 2012 Plan, we have the ability to issue incentive stock options ("ISOs"), nonqualified stock options ("NQs"), stock appreciation rights, restricted stock ("RSAs"), restricted stock units ("RSUs"), performance-based stock units ("PRSUs") and other equity-based awards to employees, directors and outside consultants. The ISOs and NQs must be granted at a price per share not less than the fair value of our common stock on the date of grant. Options granted to date primarily vest based on certain market-based and performance-based criteria as described below. Certain of the share-based awards granted and outstanding as of September 27, 2019 , are subject to accelerated vesting upon a sale of the Company or similar changes in control. Options granted generally have a term of four to seven years . As of September 27, 2019 , we had 15.7 million shares available for future issuance under the 2012 Plan and 3.4 million shares available for issuance under our ESPP. Outside of the three equity plans described above, we also grant incentive stock units ("ISUs") to certain of our international employees which typically vest over four years and for which the fair value is determined by our underlying stock price, which are classified as liabilities and settled in cash upon vesting. As of September 27, 2019 , we had 195,598 ISU awards outstanding with a fair value of $2.0 million recorded as an accrued compensation liability. As of September 28, 2018 , we had approximately 191,620 ISU awards outstanding with a fair value of $1.9 million recorded as an accrued compensation liability. During fiscal year 2019 , 69,035 ISU awards vested and were paid at a fair value of $1.2 million . We recorded an expense for these ISU awards of $1.3 million in fiscal year 2019 , primarily as a result of an increase in our stock price, and we recorded a gain of $1.1 million and an expense of $3.9 million in fiscal years 2018 and 2017 , respectively. Employee Stock Purchase Plan The ESPP allows eligible employees to purchase shares of our common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. In administering the ESPP, the board of directors has limited discretion to set the length of the offering periods thereunder. As of September 27, 2019 , total unrecognized compensation cost related to the ESPP was $0.3 million . In fiscal years 2019 , 2018 and 2017 , 421,777 , 305,851 and 146,149 shares of common stock were issued under the ESPP, respectively. The 2012 Plan contains an “evergreen” provision, pursuant to which the number of shares of common stock available for issuance under the 2012 Plan can be increased on the first day of each fiscal year by the lesser of (a) 4.0% of outstanding common stock on a fully diluted basis as of the end of the immediately preceding fiscal year, (b) 1.9 million shares of common stock and (c) a lesser amount determined by the board of directors; provided, however, that any shares from any increases in previous years that are not actually issued will continue to be available for issuance under the 2012 Plan. The ESPP also contains an “evergreen” provision, pursuant to which the number of shares of common stock available for issuance under the ESPP can be increased on the first day of each fiscal year by the lesser of (a) 1.25% of outstanding common stock on a fully diluted basis as of the end of the immediately preceding fiscal year, (b) 550,000 shares of common stock and (c) a lesser amount determined by the board of directors; provided, however, that any shares from any increases in previous years that are not actually issued will continue to be available for issuance under the ESPP. In fiscal year 2019 , pursuant to the evergreen provisions, the number of shares of common stock available for issuance under the 2012 Plan and the ESPP were increased by 1.9 million shares and 550,000 shares, respectively. Share-Based Compensation The following table shows a summary of share-based compensation expense included in the Consolidated Statements of Operations during the periods presented (in thousands): Fiscal Years 2019 2018 2017 Cost of revenue $ 2,936 $ 3,869 $ 3,189 Research and development 8,551 13,448 10,565 Selling, general and administrative 12,305 14,620 22,581 Total $ 23,792 $ 31,937 $ 36,335 Amounts presented above include share-based compensation expense of $0.8 million for fiscal year 2017, which is recorded as discontinued operations related to employees of our Compute business. As of September 27, 2019 , the total unrecognized compensation costs related to outstanding stock options, restricted stock awards and units including awards with time-based, performance-based, and market-based vesting was $47.0 million , which we expect to recognize over a weighted-average period of 2.9 years . Stock Options A summary of stock option activity for fiscal year 2019 is as follows (in thousands, except per share amounts and contractual term): Number of Shares Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Options outstanding - September 28, 2018 1,408 $ 32.05 Granted 585 15.44 Exercised (119 ) 13.48 Forfeited, canceled or expired (1,497 ) 31.68 Options outstanding - September 27, 2019 376 $ 13.58 7.03 $ 3,046 Options vested and expected to vest - September 27, 2019 376 $ 13.58 7.03 $ 3,046 Options exercisable - September 27, 2019 91 $ 9.82 2.48 $ 1,081 Aggregate intrinsic value represents the difference between our closing stock price on September 27, 2019 , and the exercise price of outstanding, in-the-money options. The total intrinsic value of options exercised was $0.7 million , $0.9 million and $8.9 million for fiscal years 2019 , 2018 and 2017 , respectively. Stock Options with Time-based Vesting Criteria In November 2017, we granted 10,924 incentive stock options and 69,076 non-qualified stock options with a total grant date fair value of $17.55 per share, or $1.4 million . These stock options were valued using a Black-Scholes model, using a volatility rate of 45.7% , a risk-free rate of 2.21% , a strike price of $36.61 and an expected term of 6.5 years . Share-based compensation expense is recognized on a straight-line basis over the service period which approximated 4.5 years for these awards. These awards were included in the cancellation during the fiscal first quarter of 2019 as discussed in the section below. Stock Options with Market-based Vesting Criteria We grant NQs that are subject to vesting only upon the market price of our underlying public stock closing above a certain price target within seven years of the date of grant. Share-based compensation expense is recognized regardless of the number of awards that are earned based on the market condition and is recognized on a straight-line basis over the estimated service period of approximately three years . If the required service period is not met for these options, then the share-based compensation expense would be reversed. In the event that our common stock achieves the target price per share based on a 30 -day trailing average prior to the end of the estimated service period, any remaining unamortized compensation cost will be recognized. Stock options with market-based vesting criteria granted for fiscal years 2019 , 2018 and 2017 were 585,000 , 325,000 and 320,000 , respectively, at weighted average grant date fair values of $7.47 , $15.52 and $13.18 per share, or total grant date fair value $2.4 million , $5.0 million and $4.3 million , respectively. These NQs with market-based vesting criteria were valued using a Monte Carlo simulation model. The weighted average Monte Carlo input assumptions used for calculating the fair value of these market-based stock options are as follows: Fiscal Years 2019 2018 2017 Risk-free interest rate 2.8 % 2.3 % 1.9 % Expected term (years) 3.9 3.4 7.0 Expected volatility 51.9 % 45.8 % 32.3 % Target price $53.87 $98.99 $67.39 During our fiscal first quarter of 2019, we canceled 1,122,500 performance-based stock options with a concurrent grant of 748,328 PRSUs for 13 employees, which was accounted for as a modification. The incremental compensation cost resulting from the modification was $8.2 million , and was being recognized as share-based compensation expense over the requisite service period of three years for the new PRSU awards. As a result of subsequent actions that resulted in forfeitures, the remaining compensation expense associated with this modification as of September 27, 2019 is $2.8 million . Restricted Stock Awards and Units A summary of restricted stock awards and units activity for fiscal year 2019 is as follows (in thousands): Number of Shares Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value Issued and unvested - September 28, 2018 1,872 $ 34.15 $ 38,452 Granted 2,977 18.18 Vested (673 ) 34.87 Forfeited, canceled or expired (1,563 ) 24.06 Issued and unvested - September 27, 2019 2,613 21.81 $ 56,649 As of September 27, 2019 , the aggregate intrinsic value of expected to vest restricted stock units including time-based, performance-based, and market-based units was $56.3 million for fiscal year 2019 . The total fair value of restricted stock awards and units vested was $11.7 million , $19.7 million and $51.2 million for the fiscal years 2019 , 2018 and 2017 , respectively. RSUs granted generally vest over a period of four years . In addition to RSUs, we also issue PRSUs with specific performance vesting criteria. These PRSUs have both a service and performance-based vesting condition and awards are divided into three equal tranches and vest based on achieving certain adjusted earnings per share growth metrics. The service condition requires participants to be employed on May 15th of the following year once the performance condition has been met. Depending on the actual performance achieved, a participant may earn between 0% to 300% of the targeted shares for each tranche, which is determined based on a straight-line interpolation applied for the achievement between the specified performance ranges. As of September 27, 2019 , the performance condition targets for awards with future service conditions had not been met. We granted 1,005,854 PRSUs during fiscal year 2019 and 745,047 were forfeited. The amount of incremental PRSU awards that could ultimately vest if all performance criteria are achieved would be 1,196,337 shares assuming a maximum of 300% of the targeted shares. We granted 200,000 market-based RSUs during fiscal year 2019, at a weighted average grant date fair value of $17.65 per share, and a total fair value of $3.5 million . Recipients may earn between 0% and 150% of the target number of shares based on the Company's achievement of total shareholder return in comparison to a peer group of companies in the Nasdaq composite index over a period of approximately three years . The fair value of the awards was estimated using a Monte Carlo simulation and compensation expense is recognized ratably over the service period based on the grant date fair value of the awards of $3.5 million subject to the market condition. The expected volatility of the Company's common stock was estimated based on the historical average volatility rate over the three-year period. The dividend yield assumption was based on historical and anticipated dividend payouts. The risk-free rate assumption was based on observed interest rates consistent with the three-year measurement period. The assumptions used to value the awards are as follows: Fiscal Year 2019 Risk free interest rate 1.9 % Years to maturity 3.33 Expected volatility rate 61.5 % Dividend yield — |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 27, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY We have authorized 10 million shares of $0.001 par value preferred stock and 300 million shares of $0.001 par value common stock as of September 27, 2019 and September 28, 2018 . The outstanding shares of common stock as of September 28, 2018 , presented in the accompanying Consolidated Statements of Stockholders’ Equity, excludes 6,100 unvested shares of restricted stock awards, respectively, issued as compensation to employees that were subject to forfeiture. There were no unvested shares of restricted stock awards that were subject to forfeiture as of September 27, 2019 . Common Stock Warrants —In March 2012, we issued warrants to purchase 1,281,358 shares of common stock for $14.05 per share. The warrants expire December 21, 2020 , or earlier as per the terms of the agreement, including immediately following consummation of a sale of all or substantially all assets or capital stock or other equity securities, including by merger, consolidation, recapitalization or similar transactions. We do not currently have sufficient registered and available shares to immediately satisfy a request for registration, if such a request were made. As of September 27, 2019 , no exercise of the warrants had occurred and no request had been made to register the warrants or any underlying securities for resale by the holders. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Sep. 27, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | RELATED-PARTY TRANSACTIONS Cadence Design Systems, Inc. ("Cadence") provides us with certain engineering licenses on an ongoing basis. Geoffrey Ribar, who joined our board of directors on March 22, 2017, served as an officer of Cadence through September 30, 2017 and served as a Senior Advisor to Cadence until March 31, 2018. During fiscal year 2018, we made payments of $4.1 million to Cadence prior to March 31, 2018. During fiscal year 2017, we made payments of $6.3 million subsequent to Mr. Ribar joining our board of directors. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Sep. 27, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS Divested Business On May 10, 2018, we completed the sale and transfer of certain assets associated with our Japan-based long-range optical subassembly business (the "LR4 business"), pursuant to an Asset Purchase and Intellectual Property License Agreement, dated April 30, 2018 (the "LR4 Agreement"). The LR4 Agreement provided that the buyer would pay us $5.0 million within 30 days following the closing of the transactions contemplated by the LR4 Agreement, provide us with the opportunity to supply components, and would pay us further amounts to be determined for inventory and fixed assets within 60 days of receipt of required Chinese government approvals. As of September 28, 2018, $7.4 million had been recorded as Prepaid and other current assets and $4.8 million had been recorded as Assets held for sale, as the assets had not been transferred to the buyer as of September 28, 2018. As a result of the transaction, during fiscal year 2018 we recorded a loss on disposal of $34.3 million associated with LR4 business as other expense, comprised of expected proceeds of $17.2 million , subject to receipt of required Chinese government approvals, less the carrying value of assets sold, primarily including customer relationship intangible assets of $27.7 million , inventory of $13.7 million , fixed assets of $7.6 million and goodwill of $2.6 million . The transaction did not meet the criteria of discontinued operations. We also entered into a Transition Services Agreement (the "LR4 TSA") with the buyer, pursuant to which we agreed to incur up to $2.0 million of operating expenses for certain ongoing administrative services to support the buyer for up to six months after the closing of the transaction. During fiscal year 2019, we incurred no expenses associated with the LR4 TSA. During fiscal year 2018, we incurred $2.0 million of expenses associated with the LR4 TSA which were recorded as general and administrative expenses. As of September 27, 2019, we have $14.0 million of receivables, net of a $0.3 million reserve, associated with the LR4 Agreement recorded as Prepaid and other current assets, which includes $11.9 million of additional consideration, net of tax, and $1.5 million associated with the LR4 TSA. Discontinued Operations On October 27, 2017, we entered into a purchase agreement to sell the Compute business. In consideration for the transfer and sale of the Compute business, we received an equity interest in the buyer valued at approximately $36.5 million , representing the carrying value of the assets divested and representing less than 20.0% of the buyer's total outstanding equity. The operations of the Compute business were accounted for as discontinued operations through the date of divestiture. We also entered into a transition services agreement (the "Compute TSA"), pursuant to which we agreed to perform certain primarily general and administrative functions on the buyer's behalf during a migration period and for which we are reimbursed for costs incurred. During the fiscal year 2019, we received $0.1 million of reimbursements under the Compute TSA, which was recorded as a reduction of our general and administrative expenses. During the fiscal year 2018, we received $3.6 million of reimbursements under the Compute TSA, which was recorded as a reduction of our general and administrative expenses. In August of fiscal year 2015, we sold our Automotive business, as the Automotive business was not consistent with our long-term strategic vision from both a growth and profitability perspective. Additionally, we entered into a Consulting Agreement with the buyer pursuant to which we were to provide the buyer with certain non-design advisory services for a period of two years following the closing of the transaction for up to $15.0 million , from which we have recorded $7.5 million as other income during both fiscal years 2017 and 2016. No income was recognized during fiscal years 2019 or 2018. During fiscal year 2017, we received $18.0 million , the full amount of the indemnification escrow. The accompanying Consolidated Statements of Operations includes the following operating results related to these discontinued operations (in thousands): Fiscal Years 2018 2017 Revenue (1) $ — $ 660 Cost of revenue (1) (596 ) 2,252 Gross profit (loss) 596 (1,592 ) Operating expenses: Research and development (1) 5,251 29,167 Selling, general and administrative (1) 1,560 13,840 Total operating expenses 6,811 43,007 Loss from discontinued operations (1) (6,215 ) (44,599 ) Other income (2) — 7,500 Gain on sale (2) — 18,022 Loss income before income taxes (6,215 ) (19,077 ) Income tax provision (benefit) — — Loss income from discontinued operations (6,215 ) (19,077 ) Cash flow used in Operating Activities (1) (10,734 ) (42,776 ) Cash flow from Investing Activities (2) — 25,522 (1) Amounts are associated with the Compute business. (2) Amounts are associated with the Automotive business. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 27, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table set forth the computation for basic and diluted net income (loss) per share of common stock (in thousands, except per share data): Fiscal Years 2019 2018 2017 Numerator: Loss from continuing operations $ (383,798 ) $ (133,762 ) $ (150,416 ) Loss from discontinued operations — (6,215 ) (19,077 ) Net loss (383,798 ) (139,977 ) (169,493 ) Warrant liability gain — (27,646 ) — Net loss attributable to common stockholders $ (383,798 ) $ (167,623 ) $ (169,493 ) Denominator: Weighted average common shares outstanding-basic 65,686 64,741 60,704 Dilutive effect of warrants — 570 — Weighted average common shares outstanding-diluted 65,686 65,311 60,704 Common stock earnings per share-basic: Continuing operations $ (5.84 ) $ (2.07 ) $ (2.48 ) Discontinued operations — (0.10 ) (0.31 ) Net common stock earnings per share-basic $ (5.84 ) $ (2.16 ) $ (2.79 ) Common stock earnings per share-diluted: Continuing operations $ (5.84 ) $ (2.47 ) $ (2.48 ) Discontinued operations — (0.10 ) (0.31 ) Net common stock earnings per share-diluted $ (5.84 ) $ (2.57 ) $ (2.79 ) As of September 27, 2019 , we had warrants outstanding which were reported as a liability on the consolidated balance sheet. During fiscal years 2019 and 2018, we recorded gains of $0.8 million and $27.6 million , respectively, associated with adjusting the fair value of the warrants, in the Consolidated Statements of Operations primarily as a result of declines in our stock price. When calculating earnings per share we are required to adjust for the dilutive effect of outstanding common stock equivalents, including adjustment to the numerator for the dilutive effect of contracts that must be settled in common stock. During the fiscal year ended September 27, 2019, we excluded the effects of the warrant gain and the 214,303 of potential shares of common stock issuable upon exercise of warrants as the inclusion would be anti-dilutive. During the fiscal year ended September 28, 2018, we adjusted the numerator to exclude the warrant gain $27.6 million , and we also adjusted the denominator for the dilutive effect of the incremental warrant shares of 569,667 under the treasury stock method. For the fiscal years 2018, the table above excludes the effects of 375,940 shares of potential shares of common stock issuable upon exercise of stock options, restricted stock and restricted stock units as the inclusion would be anti-dilutive. The table excludes the effects of 386,552 and 1,877,401 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Sep. 27, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION As of September 27, 2019 and September 28, 2018 , we had $0.6 million and $ 4.0 million , respectively, in unpaid amounts related to purchases of property and equipment included in accounts payable and accrued liabilities. These amounts have been excluded from the payments for purchases of property and equipment in the accompanying Consolidated Statements of Cash Flows until paid. In January 2017, we issued common stock with a fair value of $465.1 million in connection with the AppliedMicro Acquisition. This was accounted for as a non-cash transaction as no shares were purchased or sold as part of the transaction. During fiscal years 2019 and 2018 , we capitalized $1.5 million and $18.4 million , respectively, of net construction costs relating to the 144 Chelmsford Street facility, of which $0.3 million and $12.7 million , respectively, were accounted for as a non-cash transaction as the costs were paid by the developer. During fiscal year 2018, we divested the Compute business with net assets valued at approximately $36.5 million in exchange for a $36.5 million equity interest in Compute. During fiscal years 2019 and 2018 , we recorded $7.5 million and $10.4 million , respectively, of losses associated with this investment based on our proportionate share of the losses of Compute. The following is supplemental cash flow information regarding non-cash investing and financing activities (in thousands): Fiscal Years 2019 2018 2017 Cash paid for interest $ 34,157 $ 29,698 $ 30,529 Cash (refunded) paid for income taxes $ (1,931 ) $ 3,559 $ (3,161 ) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Sep. 27, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The components of accumulated other comprehensive income (loss), net of income taxes, are as follows: Foreign Currency Items Other Items Total Balance - September 29, 2017 $ 3,139 $ (162 ) $ 2,977 Foreign currency translation loss, net of tax (502 ) — (502 ) Unrealized loss on short-term investments, net of tax — (287 ) (287 ) Balance - September 28, 2018 2,637 (449 ) 2,188 Foreign currency translation gain, net of tax 1,693 — 1,693 Unrealized gain on short-term investments, net of tax — 477 477 Balance at September 27, 2019 $ 4,330 $ 28 $ 4,358 |
Geographic and Significant Cust
Geographic and Significant Customer Information | 12 Months Ended |
Sep. 27, 2019 | |
Segment Reporting [Abstract] | |
Geographic and Significant Customer Information | GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION We have one reportable operating segment that designs, develops, manufactures and markets semiconductors and modules. The determination of reportable operating segments is based on the chief operating decision maker’s ("CODM") definition of the business and the nature and use of financial information provided for the purposes of assessing performance and making operating decisions. The Company's CODM is its President and Chief Executive Officer . The results of operations provided to and analyzed by the CODM are at the consolidated level and accordingly, key resources and assessments of performance are performed at the consolidated level. The Company assesses its determination of operating segments at least annually. We continue to evaluate our internal reporting structure and the potential impact of any changes on our segment reporting. For information regarding revenue by geographic regions, based upon customer locations, see Note 3 - Revenue . Information regarding long-lived assets in different geographic regions is presented below (in thousands): As of September 27, September 28, Long-Lived Assets by Geographic Region United States $ 116,037 $ 122,888 Asia Pacific (1) 8,917 24,702 Other Countries (2) 7,693 2,333 Total $ 132,647 $ 149,923 (1) Asia Pacific represents Taiwan, Japan, India, Thailand, South Korea, Malaysia, the Philippines, Vietnam and China. (2) No international country or region represented greater than 10% of the total net long-lived assets as of the dates presented, other than the Asia-Pacific region as presented above. The following is a summary of customer concentrations as a percentage of total sales and accounts receivable as of and for the periods presented: Fiscal Years Revenue 2019 2018 2017 Customer A 16 % 13 % 11 % Customer B 7 % 6 % 10 % September 27, September 28, Accounts Receivable Customer A 24 % 19 % Customer C 10 % 26 % No other customer represented more than 10% of revenue or accounts receivable in the periods presented in the accompanying consolidated financial statements. In fiscal years 2019 , 2018 and 2017 , our top ten customers represented an aggregate of 54% , 57% and 52% |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 27, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year Fiscal Year 2019 Revenue $ 150,689 $ 128,465 $ 108,306 $ 112,248 $ 499,708 Gross profit 76,625 57,330 33,828 52,925 220,708 (Loss) income from continuing operations (23,396 ) (46,204 ) (324,714 ) 10,516 (383,798 ) Per share data (2) (Loss) income from continuing operations, basic $ (0.36 ) $ (0.71 ) $ (4.93 ) $ 0.16 $ (5.84 ) Per share data (2) (3) (Loss) income from continuing operations, diluted $ (0.44 ) $ (0.71 ) $ (4.95 ) $ 0.16 $ (5.84 ) Fiscal Year 2018 Revenue $ 130,925 $ 150,414 $ 137,872 $ 151,187 $ 570,398 Gross profit 60,954 65,601 48,169 70,982 245,706 Loss from continuing operations (16,970 ) (15,466 ) (85,210 ) (16,116 ) (133,762 ) Loss from discontinued operations (1) (5,599 ) (18 ) (220 ) (378 ) (6,215 ) Per share data (2) Loss from continuing operations, basic $ (0.26 ) $ (0.24 ) $ (1.31 ) $ (0.25 ) $ (2.07 ) Loss from discontinued operations, basic $ (0.09 ) $ 0.00 $ 0.00 $ (0.01 ) $ (0.10 ) Per share data (2) (3) Loss from continuing operations, diluted $ (0.49 ) $ (0.50 ) $ (1.31 ) $ (0.29 ) $ (2.47 ) Loss from discontinued operations, diluted $ (0.09 ) $ 0.00 $ 0.00 $ (0.01 ) $ (0.10 ) (1) During fiscal year 2017, we announced a plan to divest the Compute business of AppliedMicro, and have included the results of the Compute business as discontinued operations in each subsequent quarter. (2) Earnings per share calculations for each of the quarters are based on the weighted average number of shares outstanding and included common stock equivalents in each period. Therefore, the sums of the quarters do not necessarily equal the full year earnings per share. (3) Diluted loss per share for the fiscal first and third quarters of 2019 and the fiscal first, second and fourth quarters of 2018 excluded $5.5 million , $1.9 million , $14.6 million , $17.0 million and $2.8 million , respectively, related to warrant liability gain. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 27, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation, Basis of Presentation and Reclassification | Principles of Consolidation, Basis of Presentation and Reclassification —We have one reportable segment, semiconductors and modules. The accompanying consolidated financial statements include our accounts and the accounts of our majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. We have a 52- or 53-week fiscal year ending on the Friday closest to the last day of September. The fiscal years 2019 , 2018 and 2017 included 52 weeks. To offset the effect of holidays, for fiscal years in which there are 53 weeks, we typically include the extra week arising in our fiscal years in the first quarter. |
Use of Estimates | Use of Estimates —The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities during the reporting periods, the reported amounts of revenue and expenses during the reporting periods and the disclosure of contingent assets and liabilities at the date of the financial statements. On an ongoing basis, we base estimates and assumptions on historical experience, currently available information and various other factors that management believes to be reasonable under the circumstances. Actual results may differ from these estimates and assumptions. |
Discontinued Operations | Discontinued Operations— In the first quarter of fiscal year 2018, we divested AppliedMicro's compute business (the "Compute business"). The operating results of the Compute business are reflected in discontinued operations. In the third quarter of fiscal year 2018, we divested our Japan-based long-range optical subassembly business (the "LR4 business"). The operating results of the LR4 business have been reflected in our continuing operations up through the May 10, 2018 sale date, with the $34.3 million |
Foreign Currency Translation and Remeasurement | Foreign Currency Translation and Remeasurement —Our consolidated financial statements are presented in U.S. dollars. While the majority of our foreign operations use the U.S. dollar as the functional currency, the financial statements of our foreign operations for which the functional currency is not the U.S. dollar are translated into U.S. dollars at the exchange rates in effect at the balance sheet dates (for assets and liabilities) and at average exchange rates (for revenue and expenses). The unrealized translation gains and losses on the net investment in these foreign operations are accumulated as a component of other comprehensive (loss) income. The financial statements of our foreign operations where the functional currency is the U.S. dollar, but where the underlying transactions are transacted in a different currency, are remeasured at the exchange rate in effect at the balance sheet date with respect to monetary assets and liabilities. Nonmonetary assets and liabilities, such as inventories and property and equipment and related statements of operations accounts, such as cost of revenue and depreciation, are remeasured at historical exchange rates. Revenue and expenses, other than cost of revenue, amortization and depreciation, are translated at the average exchange rate for the period in which the transaction occurred. The net gains and losses on foreign currency remeasurement are reflected in selling, general and administrative expense in the accompanying Consolidated Statements of Operations. Net foreign exchange transaction gains and losses for all periods presented were not material. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Investments | Investments — Short-term investments: We classify our short-term investments as available-for-sale. Our investments classified as available-for-sale are recorded at fair value based upon third party pricing at period end. Unrealized gains and losses that are deemed temporary in nature are recorded in accumulated other comprehensive income and loss as a separate component of stockholders’ equity. A decline in the fair value of any security below cost that is deemed other than temporary results in a charge to earnings and the corresponding establishment of a new cost basis for the security. Premiums and discounts are amortized (accreted) over the life of the related security as an adjustment to its yield. Dividend and interest income are recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of investments sold. Other investments: We use the equity method to account for investments in companies if the investment provides us with the ability to exercise significant influence over operating and financial policies of the investee. Our proportionate share of the net income (loss) resulting from these investments are reported within the Other expense line in our Consolidated Statements of Operations. The carrying value of our equity method investment is reported in Other investments in our Consolidated Balance Sheets. Our equity method investment is reported at cost and adjusted each period for our share of the investee’s income or loss and dividends paid, if any, as well as any changes attributable to the equity of the investee that would impact our ownership. Other investments that are not controlled, and over which we do not have the ability to exercise significant influence, are accounted for under the cost method and reported in Other investments in our Consolidated Balance Sheets. We have elected that our cost method investments, which do not have readily determinable fair values and do not qualify for the practical expedient under Accounting Standards Codification ("ASC") 820, Fair Value Measurement , are carried at cost less any impairment. The investments do not have readily determinable fair values and are periodically evaluated for impairment. An impairment loss would be recorded whenever there is a decline in value of an investment below its carrying amount that is determined to be other than temporary. |
Inventories | Inventories —Inventories are stated at the lower of cost or net realizable value. We use a combination of standard cost and moving weighted-average cost methodologies to determine the cost basis for our inventories, approximating a first-in, first-out basis. The standard cost of finished goods and work-in-process inventory is composed of material, labor and manufacturing overhead, which approximates actual cost. In addition to stating inventory at the lower of cost or net realizable value, we also evaluate inventory each reporting period for excess quantities and obsolescence, establishing reserves when necessary based upon historical experience, assessment of economic conditions and expected demand. Once recorded, these reserves are considered permanent adjustments to the carrying value of inventory. |
Property and Equipment | Property, Plant and Equipment —Property, plant and equipment is stated at cost, less accumulated depreciation and amortization. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major improvements that significantly extend the useful life of the assets are capitalized as additions to property and equipment. Property and equipment are depreciated or amortized using the straight-line method over the following estimated useful lives: Asset Classification Estimated Useful Life (In Years) Buildings and improvements 20 – 40 Capital lease assets 5 - 20 Computer equipment and software 2 – 5 Furniture and fixtures 7 – 10 Leasehold improvements Shorter of useful life or term of lease Machinery and equipment 2 – 7 |
Goodwill and Indefinite-lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets —We have goodwill and certain intangible assets with indefinite lives which are not subject to amortization; these are reviewed for impairment annually as of the end of our August fiscal month end and more frequently if events or changes in circumstances indicate that the assets may be impaired. For our assessment of goodwill impairment, we compare the carrying value of the reporting unit to the fair value of the Company. For our assessment of in-service indefinite-lived assets we compare the carrying value of the asset to the estimated fair value of the asset. For indefinite-lived assets not in service, such as in-process research and development, we perform both qualitative and quantitative assessments using an assumption of "more likely than not" to determine if there are any impairment indicators. If impairment exists, a loss is recorded to write down the value of the assets to their implied fair values. During the fiscal year ended September 29, 2017, we recorded impairment charges related to indefinite-lived intangible assets. S ee Note 17 - Impairments |
Impairment of Long-Lived Assets | Long-Lived Asset Valuation and Impairment Assessment —Long-lived assets include property and equipment and definite-lived intangible assets subject to amortization. We evaluate long-lived assets for recoverability when events or changes in circumstances indicate that their carrying amounts may not be recoverable. Circumstances which could trigger a review include, but are not limited to, significant decreases in the market price of the asset or asset group, significant adverse changes in the business climate or legal factors, the accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset, current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset and a current expectation that the asset will more likely than not, be sold or disposed of significantly before the end of its previously estimated useful life. In evaluating a long-lived asset for recoverability, we estimate the undiscounted cash flows expected to result from our use and eventual disposition of the asset. If the sum of the expected undiscounted cash flows is less than the carrying amount of the asset group, an impairment loss, equal to the excess of the carrying amount over the fair value of the asset, is recognized. In fiscal year 2019, we recorded impairment charges primarily as a result of restructuring actions initiated during the year. In fiscal year 2018, we recorded impairment charges related to property and equipment and other assets designated for future use with Zhongxing Telecommunications Equipment Corporation ("ZTE"), as a result of the Bureau of Industry and Security ("BIS") denial order on April 15, 2018. There were no impairments of long-lived assets in fiscal year 2017. S ee Note 17 - Impairments , for further detail of these impairment charges. Intangible assets related to in-process research and development acquired are not amortized until the underlying asset begins revenue-generating activity, at which time it is amortized over its estimated useful life. Intangibles related to abandoned in-process research and development projects are expensed in the period the project is abandoned. |
Other Intangible Assets | Other Intangible Assets —Our other intangible assets, including acquired technology and customer relationships, are definite-lived assets and are subject to amortization. We amortize definite-lived assets over their estimated useful lives, which range from five to fourteen years |
Revenue Recognition | Revenue Recognition —Substantially all of our revenue is derived from sales of high-performance RF, microwave, millimeterwave and lightwave semiconductor solutions into three primary markets: Telecom, Data Centers and I&D. In fiscal years 2018 and 2017, we recognized revenue under Accounting Standards Codification ("ASC") 605, Revenue Recognition, when: (i) persuasive evidence of an arrangement existed; (ii) delivery or services had been rendered; (iii) the price was fixed or determinable; and (iv) collectability was reasonably assured. We recognized revenue with the transfer of title and risk of loss and provided for reserves for returns and other allowances. In fiscal year 2019, we recognized revenue within the scope of ASC 606, Revenue from Contracts with Customers. Revenue is recognized when a customer obtains control of products or services in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. To determine revenue recognition for arrangements within the scope of ASC 606, we perform the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) we satisfy performance obligations. Sales, value add and other taxes collected on behalf of third parties are excluded from revenue. Our revenue arrangements do not contain significant financing components. Contracts with our customers principally contain only one distinct performance obligation, which is the sale of products. However, due to multiple products potentially being sold on a single order, we are required to allocate consideration based on the estimated relative standalone selling prices of the promised products. Periodically, we enter into non-product development and license contracts with certain customers. We generally recognize revenue from these contracts over-time as services are provided based on the terms of the contract. Revenue is deferred for amounts billed or received prior to delivery of the services. Certain contracts may contain multiple performance obligations for which we allocate revenue to each performance obligation based on the relative stand-alone selling price. Our product revenue is recognized when the customer obtains control of the product or services, which generally occurs at a point in time, and is based on the contractual shipping terms of a contract. Non-product revenue is generally recognized over time. For each contract, the promise to transfer the control of the products or services, each of which is individually distinct, is considered to be the identified performance obligation. We provide an assurance type warranty which is not sold separately and does not represent a separate performance obligation. Therefore, we account for such warranties under ASC 460, Guarantees , and the estimated costs of warranty claims are generally accrued as cost of revenue in the period the related revenue is recorded. We have agreements with certain distribution customers which may include certain rights of return and pricing programs, including returns for aged inventory, stock rotation and price protection which affect the transaction price. Sales to these customers and programs offered are in accordance with terms set forth in written agreements, which require us to assess the potential revenue effects of this variable consideration utilizing the expected value method. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. As such, revenue on sales to customers that include rights of return and pricing programs are recorded net of estimated variable consideration, utilizing the expected value method based on historical sales data. We believe that the judgments and estimates we utilize are reasonable based upon current facts and circumstances, however utilizing different judgments and estimates could result in different amounts. Practical Expedients and Elections — ASC 606 requires that we disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of the reporting periods presented. The guidance provides certain practical expedients that limit this requirement and, therefore, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which revenue is recognized at the amount to which we have the right to invoice for services performed. We have elected not to disclose the aggregate amount of transaction prices associated with unsatisfied or partially unsatisfied performance obligations for contracts where these criteria are met. Our policy is to capitalize any incremental costs incurred to obtain a customer contract, only to the extent that the benefit associated with the costs is expected to be longer than one year. Capitalizable contract costs were not significant both at the date of adoption and as of September 27, 2019 . We account for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products. When shipping and handling costs are incurred after a customer obtains control of the products, we have elected to account for these as costs to fulfill the promise and not as a separate performance obligation. Shipping and handling costs associated with the distribution of products to customers are recorded in costs of revenue generally when the related product is shipped to the customer. |
Research and Development Costs | Research and Development Costs |
Income Taxes | Income Taxes —Deferred tax assets and liabilities are recognized based on temporary differences between the financial reporting and income tax bases of assets and liabilities, using rates anticipated to be in effect when such temporary differences reverse. A valuation allowance against net deferred tax assets is required if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. We provide reserves for potential payments of tax to various tax authorities related to uncertain tax positions and other issues. Reserves are based on a determination of whether and how much of a tax benefit is taken by us in our tax filings or positions that are more likely than not to be realized following an examination by taxing authorities. We recognize the financial statement benefit of an uncertain tax position only after considering the probability that a tax authority would sustain the position in an examination. For tax positions meeting a “more-likely-than-not” threshold, the amount recognized in the financial statements is the benefit expected to be realized upon settlement with the tax authority. For tax positions not meeting the threshold, no financial statement benefit is recognized. Potential interest and penalties associated with such uncertain tax positions are recorded as a component of income tax expense. |
Earnings Per Share | Earnings Per Share |
Fair Value Measurements | Fair Value Measurements —Financial assets and liabilities are measured at fair value. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability at the measurement date under current market conditions in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, we group financial assets and liabilities in a three-tier fair value hierarchy, according to the inputs used in measuring fair value as follows: Level 1—observable inputs such as quoted prices in active markets for identical assets and liabilities; Level 2—inputs other than quoted prices in active markets that are observable either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical assets and liabilities in markets that are not active and model-based valuation techniques for which significant assumptions are observable in active markets; and, Level 3—unobservable inputs for which there is little or no market data, requiring us to develop our own assumptions for model-based valuation techniques. This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Money market funds are actively traded and consist of highly liquid investments with original maturities of 90 days or less. They are measured at their net asset value and classified as Level 1. Corporate and agency bonds and commercial paper are categorized as Level 2 assets except where sufficient quoted prices exist in active markets, in which case such securities are categorized as Level 1 assets. These securities are valued using third-party pricing services. These services may use, for example, model-based pricing methods that utilize observable market data as inputs. We generally use quoted prices for recent trading activity of assets with similar characteristics to the debt security or bond being valued. The securities and bonds priced using such methods are generally classified as Level 2. Broker dealer bids or quotes on securities with similar characteristics may also be used. |
Share-Based Compensation | Share-Based Compensation —We account for all share-based compensation arrangements using the fair value method. We recognize compensation expense over the requisite service period of the award, which is generally the vesting period, using the straight-line method for service-based awards and the accelerated method for performance-based awards, and providing that the minimum amount of compensation recorded is equal to the vested portion of the award. We record the expense in the Consolidated Statements of Operations in the same manner in which the award recipients’ salary costs are classified. For restricted stock awards with service conditions we use the closing stock price on the date of grant to estimate the fair value of the awards. We use the Black-Scholes option-pricing model to estimate the fair value of stock options with service and performance conditions, inclusive of assumptions for risk-free interest rates, dividends, expected terms and estimated volatility. We use the Monte Carlo Simulation analysis to estimate the fair value of stock options and awards with market conditions, inclusive of assumptions for risk free interest rates, expected term, expected volatility and the target price. We derive the risk-free interest rate assumption from the U.S. Treasury’s rates for U.S. Treasury zero-coupon bonds with maturities similar to the expected term of the award being valued. We base the assumed dividend yield on its expectation of not paying dividends in the foreseeable future. We calculate the weighted-average expected term of the options using historical data. In addition, we calculate our estimated volatility using our historical stock price volatility data. In fiscal year 2018 we adopted Accounting Standards Update ("ASU") 2016-09, Compensation - Stock Compensation ("ASU 2016-09"), and upon adoption we elected to account for forfeitures when they occur. Prior to the adoption of ASU 2016-09 the accounting for share-based compensation required forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differed from those estimates. Share-based awards that are settled in cash are recorded as liabilities. The measurement of the liability and compensation cost for these awards is based on |
Guarantees and Indemnification Obligations | Guarantees and Indemnification Obligations —We enter into agreements in the ordinary course of business with, among others, customers, distributors and OEMs. Most of these agreements require us to indemnify the other party against third-party claims alleging that a Company product infringes a patent and/or copyright. Certain agreements in which we grant limited licenses to Company intellectual property require us to indemnify the other party against third-party claims alleging that the use of the licensed intellectual property infringes a third-party's intellectual property. Certain of these agreements require us to indemnify the other party against certain claims relating to property damage, personal injury or the acts or omissions, its employees, agents or representatives. In addition, from time to time, we have made certain guarantees in the form of warranties regarding the performance of Company products to customers. We have agreements with certain vendors, creditors, lessors and service providers pursuant to which we have agreed to indemnify the other party for specified matters, such as acts and omissions, its employees, agents or representatives. We have procurement or license agreements with respect to technology used in our products and agreements in which we obtain rights to a product from an OEM. Under some of these agreements, we have agreed to indemnify the supplier for certain claims that may be brought against such party with respect to our acts or omissions relating to the supplied products or technologies. Our certificate of incorporation and agreements with certain of our directors and officers and certain of our subsidiaries’ directors and officers provide them indemnification rights, to the extent legally permissible, against liabilities incurred by them in connection with legal actions in which they may become involved by reason of their service as a director or officer. As a matter of practice, we have maintained director and officer liability insurance coverage, including coverage for directors and officers of acquired companies. We have not experienced any losses related to these indemnification obligations in any period presented and no claims with respect thereto were outstanding as of September 27, 2019 and September 28, 2018 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Pronouncements Adopted in Fiscal Year 2019 We adopted ASU 2014-09, Revenue from Contracts with Customers, on September 29, 2018. The Financial Accounting Standards Board ("FASB") subsequently issued several amendments and updates to the new revenue standard. We refer to ASU 2014-09 and its related ASUs as "ASC 606". We applied ASC 606 using the modified retrospective method and elected to apply this initial application of the standard only to contracts that are not completed at the date of initial application. We have analyzed this effect and found the adoption of the new guidance did not have a material impact on our consolidated financial statements as of the adoption date. The reported results for our fiscal year 2019 reflect the application of ASC 606 guidance while the reported results for our fiscal year 2018 were prepared under the guidance of ASC 605, Revenue Recognition . We adopted ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, on September 29, 2018. In February 2018, the FASB issued further amendments to this guidance. This ASU amended the guidance on the classification and measurement of financial instruments. The new standard significantly revised an entity's accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amended certain disclosure requirements associated with the fair value of financial instruments. The adoption of this update did not have a material impact on our consolidated financial statements and related disclosures. We adopted ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, on September 29, 2018. This update addressed debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. The adoption of this update did not have a material impact on our consolidated financial statements and related disclosures. We adopted ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, on September 29, 2018. This update provides guidance that changes the accounting for income tax effects of intra-entity transfers of assets other than inventory. Under the new guidance, the selling (transferring) entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing (receiving) entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. Pronouncements for Adoption in Subsequent Periods In February 2016, the FASB issued ASU 2016-02, Leases ("ASC 842"). The FASB subsequently issued several amendments and updates to the new leasing standard. The new standard increases transparency and comparability among organizations by recognizing right-of-use assets and lease liabilities on the Balance Sheet and disclosing key information about leasing arrangements. Under ASC 842, leases are classified as either operating or finance, based on criteria similar to current lease accounting, but without explicit bright lines. ASC 842 is effective for us as of September 28, 2019, and we will apply ASC 842 using the cumulative-effect adjustment on this date, with comparative periods presented in accordance with the previous guidance in ASC 840, Leases ("ASC 840"). We will use certain targeted transitional approaches that are intended to provide relief in implementing the new standard which allows us to not reassess previous accounting conclusions around whether arrangements are, or contain, leases; the classification of leases; and the treatment of initial direct costs. We will make an accounting policy election to exclude leases with an initial term of twelve months or less from the Balance Sheet similar to existing guidance for operating leases under ASC 840. We are currently assessing the impact that the adoption of ASC 842 will have on our consolidated financial statements. We currently expect a material impact to the Consolidated Balance Sheet in recognizing additional lease liabilities of $42.0 million to $46.0 million and right-of-use assets of $33.0 million to $37.0 million as of September 28, 2019, primarily related to our operating leases. We will provide enhanced disclosures about our leasing arrangements in our consolidated financial statements for future periods. We do not expect that the new standard will have a material impact on our Consolidated Statements of Operations or Cash Flows. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life | Property and equipment are depreciated or amortized using the straight-line method over the following estimated useful lives: Asset Classification Estimated Useful Life (In Years) Buildings and improvements 20 – 40 Capital lease assets 5 - 20 Computer equipment and software 2 – 5 Furniture and fixtures 7 – 10 Leasehold improvements Shorter of useful life or term of lease Machinery and equipment 2 – 7 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the total estimated acquisition consideration (in thousands): Cash consideration paid to AppliedMicro common stockholders $ 287,060 Common stock issued (9,544,125 shares of our common stock at $47.53 per share) 453,632 Equity consideration for vested "in-the-money" stock options and unvested restricted stock units 2,143 Fair value of the replacement equity awards attributable to pre-acquisition service 9,307 Total consideration paid, less cash acquired $ 752,142 |
Allocation of Purchase Price | We finalized the purchase accounting during the fiscal quarter ended June 29, 2018. The final purchase price allocation is as follows (in thousands): Final Allocation Current assets $ 6,287 Intangible assets 19,000 Other assets 3,220 Total assets acquired 28,507 Current liabilities 2,311 Other liabilities 465 Total liabilities assumed 2,776 Net assets acquired 25,731 Consideration: Cash paid upon closing, net of cash acquired 33,500 Goodwill $ 7,769 We finalized the purchase accounting during the fiscal quarter ended December 29, 2017. The final purchase price allocation is as follows (in thousands): Final Allocation Current assets $ 69,881 Intangible assets 412,848 Assets held for sale 40,944 Other assets 9,800 Total assets acquired 533,473 Liabilities held for sale 4,444 Other liabilities 18,278 Total liabilities assumed 22,722 Net assets acquired 510,751 Consideration: Cash paid upon closing 230,298 Common stock issued 455,775 Equity instruments issued 9,307 Total consideration $ 695,380 Goodwill $ 184,629 |
Components of Acquired Intangible Assets on a Preliminary Basis | The components of the acquired intangible assets were as follows (in thousands): Included In Assets Held For Sale Included In Retained Business Useful Lives (Years) Developed technology $ 9,600 $ 78,448 7 years Customer relationships — 334,400 14 years $ 9,600 $ 412,848 |
Summary of Unaudited Supplemental Pro Forma Data | The following is a summary of AppliedMicro revenue and earnings included in our accompanying Consolidated Statements of Operations for the fiscal year ended September 29, 2017 (in thousands): Amount Revenue $ 110,117 Loss from continuing operations (27,222 ) Loss from discontinued operations (44,599 ) Fiscal Year Ended September 29, 2017 Revenue $ 755,728 Loss from continuing operations (104,828 ) Loss from discontinued operations (43,734 ) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Revenue [Abstract] | |
Disaggregation of Revenue | The following tables present our revenue disaggregated by markets and geography (in thousands): Fiscal Years 2019 2018 2017 Telecom $ 180,938 $ 222,940 $ 340,022 Data Center 114,132 162,098 172,481 Industrial & Defense 204,638 185,360 186,269 Total $ 499,708 $ 570,398 $ 698,772 Fiscal Years Revenue by Geographic Region 2019 2018 2017 United States $ 239,510 $ 272,951 $ 265,038 China 132,329 159,763 206,136 Asia Pacific, excluding China (1) 80,136 79,581 170,826 Other Countries (2) 47,733 58,103 56,772 Total $ 499,708 $ 570,398 $ 698,772 (1) Asia Pacific represents Taiwan, Japan, Singapore, India, Thailand, South Korea, Australia, Malaysia, New Zealand and the Philippines. (2) No international country or region represented greater than 10% of the total revenue as of the dates presented, other than China and the Asia Pacific region as presented above. |
Contract with Customer, Asset and Liability | During the fiscal year ended September 27, 2019 , we recognized the following net sales as a result of changes in the contract liabilities balance (in thousands): September 27, 2019 Net revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period $ 7,646 The following table presents the changes in contract liabilities during fiscal year 2019 (in thousands): September 27, 2019 September 28, 2018 $ Change % Change Contract liabilities $ 10,653 $ 7,757 $ 2,896 37 % |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Available for Sale Investments | The amortized cost, gross unrealized holding gains or losses and fair value of our available-for-sale investments by major investments type as of September 27, 2019 and September 28, 2018 are summarized in the tables below (in thousands): September 27, 2019 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value Corporate bonds $ 29,578 $ 112 $ (93 ) $ 29,597 Commercial paper 71,646 1 (18 ) 71,629 Total investments $ 101,224 $ 113 $ (111 ) $ 101,226 September 28, 2018 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value Corporate bonds $ 28,731 $ — $ (460 ) $ 28,271 Commercial paper 69,966 — (16 ) 69,950 Total investments $ 98,697 $ — $ (476 ) $ 98,221 |
Summary of Contractual Maturities of Investments | The contractual maturities of available-for-sale investments were as follows (in thousands): September 27, 2019 Less than 1 year $ 75,233 Over 1 year 25,993 Total investments $ 101,226 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis consist of the following (in thousands): September 27, 2019 Fair Value Active Markets for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Assets Money market funds $ 261 $ 261 $ — $ — Commercial paper 71,629 — 71,629 — Corporate bonds 29,597 — 29,597 — Total assets measured at fair value $ 101,487 $ 261 $ 101,226 $ — Liabilities Warrant liability 12,364 — — 12,364 Total liabilities measured at fair value $ 12,364 $ — $ — $ 12,364 September 28, 2018 Fair Value Active Markets for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Assets Money market funds $ 253 $ 253 $ — $ — Commercial paper 69,950 — 69,950 — Corporate bonds 28,271 — 28,271 — Total assets measured at fair value $ 98,474 $ 253 $ 98,221 $ — Liabilities Contingent consideration $ 585 $ — $ — $ 585 Warrant liability 13,129 — — 13,129 Total liabilities measured at fair value $ 13,714 $ — $ — $ 13,714 |
Quantitative Information Used in Fair Value Calculation of Level 3 Liabilities | The quantitative information utilized in the fair value calculation of our Level 3 liabilities are as follows: Liabilities Valuation Technique Unobservable Input September 27, 2019 September 28, 2018 Contingent consideration Discounted cash flow Discount rate N/A 9.2% Probability of achievement N/A 90% Timing of cash flows N/A 1 month Warrant liability Black-Scholes model Volatility 61.4% 60.7% Discount rate 1.71% 2.81% Expected life 1.2 years 2.2 years Exercise price $14.05 $14.05 Stock price $21.68 $20.60 Dividend rate —% —% |
Changes in Assets with Inputs Classified within Level 3 of Fair Value | The changes in assets and liabilities with inputs classified within Level 3 of the fair value hierarchy consist of the following (in thousands): Fiscal Year 2019 September 28, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases and Issuances Sales and Settlements September 27, Contingent consideration $ 585 $ 65 $ — $ (650 ) $ — Warrant liability $ 13,129 $ (765 ) $ — $ — $ 12,364 Fiscal Year 2018 September 29, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases and Issuances Sales and Settlements September 28, Contingent consideration $ 1,679 $ (394 ) $ — $ (700 ) $ 585 Warrant liability $ 40,775 $ (27,646 ) $ — $ — $ 13,129 Fiscal Year 2017 September 30, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases and Issuances Sales and Settlements September 29, Contingent consideration $ 848 $ 180 $ 1,701 $ (1,050 ) $ 1,679 Warrant liability $ 38,253 $ 2,522 $ — $ — $ 40,775 |
Changes in Liabilities with Inputs Classified within Level 3 of Fair Value | The changes in assets and liabilities with inputs classified within Level 3 of the fair value hierarchy consist of the following (in thousands): Fiscal Year 2019 September 28, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases and Issuances Sales and Settlements September 27, Contingent consideration $ 585 $ 65 $ — $ (650 ) $ — Warrant liability $ 13,129 $ (765 ) $ — $ — $ 12,364 Fiscal Year 2018 September 29, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases and Issuances Sales and Settlements September 28, Contingent consideration $ 1,679 $ (394 ) $ — $ (700 ) $ 585 Warrant liability $ 40,775 $ (27,646 ) $ — $ — $ 13,129 Fiscal Year 2017 September 30, Net Realized/Unrealized Losses (Gains) Included in Earnings Purchases and Issuances Sales and Settlements September 29, Contingent consideration $ 848 $ 180 $ 1,701 $ (1,050 ) $ 1,679 Warrant liability $ 38,253 $ 2,522 $ — $ — $ 40,775 |
Accounts Receivables Allowanc_2
Accounts Receivables Allowances (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Receivables [Abstract] | |
Rollforward of Accounts Receivable Allowances | Summarized below is the activity in our accounts receivable allowances including compensation credits and doubtful accounts as follows (in thousands): Fiscal Year 2019 2018 2017 Balance - beginning of year $ 6,795 $ 9,410 $ 3,279 Provision, net 11,989 15,465 29,512 Charge-offs (13,737 ) (18,080 ) (23,381 ) Balance - end of year $ 5,047 $ 6,795 $ 9,410 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consist of the following (in thousands): September 27, 2019 September 28, 2018 Raw materials $ 59,184 $ 71,408 Work-in-process 13,799 13,466 Finished goods 34,897 37,963 Total $ 107,880 $ 122,837 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | Property, plant and equipment consists of the following (in thousands): September 27, September 28, Construction in process 24,848 49,661 Machinery and equipment 175,696 174,638 Leasehold improvements 12,962 14,984 Furniture and fixtures 3,716 2,306 Capital lease assets 46,496 19,380 Computer equipment and software 18,116 17,317 Total property and equipment 281,834 278,286 Less accumulated depreciation and amortization (149,187 ) (128,363 ) Property and equipment — net $ 132,647 $ 149,923 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | All principal amounts outstanding and interest rate information as of September 27, 2019 , for the Credit Agreement were as follows (in thousands, except rate data): Principal Outstanding LIBOR Rate Margin Effective Interest Rate Term loans $672,971 2.11% 2.25% 4.36% |
Schedule of Remained Outstanding on Term Loans | As of September 27, 2019 , the following remained outstanding on the Term Loans: September 27, 2019 Principal balance $ 672,971 Unamortized discount (3,414 ) Unamortized deferred financing costs (7,400 ) Total term loans 662,157 Current portion 6,885 Long-term, less current portion $ 655,272 |
Schedule of Minimum Principal Payments under Term Loans | As of September 27, 2019 , the minimum principal payments under the Term Loans in future fiscal years were as follows (in thousands): Fiscal year ending: Amount 2020 $ 6,885 2021 6,885 2022 6,885 2023 6,885 2024 645,431 Total $ 672,971 |
Capital Lease and Financing O_2
Capital Lease and Financing Obligations (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Capital Lease and Financing Obligations [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital Leases | As of September 27, 2019 , future minimum payments under capital lease obligations related to all of our in service leases were as follows (in thousands): Fiscal year ending: Amount 2020 $ 3,299 2021 3,343 2022 2,884 2023 2,816 2024 2,853 Thereafter 39,927 Total minimum capital lease payments $ 55,122 Less amount representing interest (26,241 ) Present value of net minimum capital lease payments $ 28,881 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands): September 27, September 28, Compensation and benefits $ 20,455 $ 22,935 Distribution costs 7,797 10,670 Product warranty 3,273 5,756 Restructuring costs 2,527 89 Professional fees 1,554 1,875 Rent and utilities 701 1,660 Income taxes payable 1,233 415 Contingent consideration — 585 Purchase price holdback — 375 Other 2,368 5,585 Total $ 39,908 $ 49,945 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum lease payments for the next five fiscal years as of September 27, 2019 , are as follows (in thousands): Fiscal year ending: Amount 2020 $ 9,987 2021 9,233 2022 7,447 2023 6,061 2024 5,564 Thereafter 16,437 Total minimum lease payments $ 54,729 |
Restructurings (Tables)
Restructurings (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of Costs Related to Restructuring Actions | The following is a summary of the restructuring charges incurred for the periods presented (in thousands): Fiscal Years 2019 2018 2017 Employee-related expenses $ 8,084 $ 2,789 $ 2,744 Facility-related expenses 11,459 3,476 — Total restructuring expenses $ 19,543 $ 6,265 $ 2,744 The following is a summary of the costs incurred and remaining balances included in accrued expenses related to restructuring actions taken (in thousands): Employee-Related Expense (1) Facility-Related Expense (2) Total Balance - September 29, 2017 $ 627 $ — $ 627 Charges 2,789 3,476 6,265 Charges paid/settled (3,327 ) (3,476 ) (6,803 ) Balance - September 28, 2018 $ 89 $ — $ 89 Charges 8,084 11,459 19,543 Charges paid/settled (6,624 ) (10,481 ) (17,105 ) Balance - September 27, 2019 $ 1,549 $ 978 $ 2,527 (1) Primarily includes severance charges associated with the reduction of our workforce in certain facilities. (2) Primarily includes activities associated with the closure of certain facilities, including any associated asset impairments and contract termination costs. Details of the Ithaca Plan activities during fiscal year ended September 27, 2019 are as follows: Employee-Related Expense Facility-Related Expense Total Balance - September 28, 2018 $ — $ — $ — Charges 1,481 3,969 5,450 Charges paid/settled (1,468 ) (3,899 ) (5,367 ) Balance - September 27, 2019 $ 13 $ 70 $ 83 Details of the Design Facilities Plan activities during fiscal year ended September 27, 2019 are as follows: Employee-Related Expense Facility-Related Expense Total Balance - September 28, 2018 $ — $ — $ — Charges 338 2,190 2,528 Charges paid/settled (338 ) (1,739 ) (2,077 ) Balance - September 27, 2019 $ — $ 451 $ 451 Details of the 2019 Plan activities during fiscal year ended September 27, 2019 are as follows: Employee-Related Expense Facility-Related Expense Total Balance - September 28, 2018 $ — $ — $ — Charges 6,265 5,300 11,565 Charges paid/settled (4,729 ) (4,843 ) (9,572 ) Balance at September 27, 2019 $ 1,536 $ 457 $ 1,993 Details of the Long Beach, Belfast and Sydney Plan activities during fiscal years ended September 28, 2018 and September 27, 2019 are as follows: Employee-Related Expense Facility-Related Expense Total Balance - September 29, 2017 $ — $ — $ — Charges 2,789 3,476 6,265 Charges paid/settled (2,700 ) (3,476 ) (6,176 ) Balance - September 28, 2018 $ 89 $ — $ 89 Charges — — — Charges paid/settled (89 ) — (89 ) Balance - September 27, 2019 $ — $ — $ — |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Guarantees [Abstract] | |
Schedule of Product Warranty Liability Activity | Product warranty liability activity is as follows (in thousands): Fiscal Years 2019 2018 2017 Balance — beginning of year $ 5,756 $ 3,672 $ 1,039 (Divested)/acquired — (49 ) 952 Provisions/(expense) (3,053 ) 1,865 1,737 Direct charges/(payments) 570 268 (56 ) Balance — end of year $ 3,273 $ 5,756 $ 3,672 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Amortization Expense Related to Amortizable Intangible Assets | Amortization expense related to intangible assets is as follows (in thousands): Fiscal Years 2019 2018 2017 Cost of revenue $ 29,847 $ 33,429 $ 30,286 Selling, general and administrative 44,872 48,265 35,456 Total $ 74,719 $ 81,694 $ 65,742 |
Summary of Intangible Assets | Intangible assets consist of the following (in thousands): September 27, September 28, Acquired technology $ 179,682 $ 251,673 Customer relationships 245,870 518,234 Trade name, indefinite lived 3,400 3,400 Total 428,952 773,307 Less accumulated amortization (247,724 ) (260,522 ) Intangible assets — net $ 181,228 $ 512,785 |
Summary of Estimated Amortization of Intangible Assets in Future Fiscal Years | As of September 27, 2019 , our estimated amortization of our intangible assets in future fiscal years, was as follows (in thousands): 2020 2021 2022 2023 2024 Thereafter Amortization expense $ 50,330 46,213 33,433 26,048 15,410 6,394 |
Summary of Activity in Intangible Assets and Goodwill | A summary of the activity in intangible assets and goodwill follows (in thousands): Gross Intangible Assets Total Intangibles Acquired Customer Trade Name Total Goodwill Balance at September 29, 2017 $ 811,703 $ 251,655 $ 556,648 $ 3,400 $ 313,765 Allocation to divested business (39,285 ) — (39,285 ) — (2,560 ) Fair value adjustment — — — — 2,790 Currency translation adjustments 889 18 871 — 81 Balance at September 28, 2018 773,307 251,673 518,234 3,400 314,076 Currency translation adjustments 270 270 — — 651 Impairments of intangible assets (344,625 ) (72,261 ) (272,364 ) — — Balance at September 27, 2019 $ 428,952 $ 179,682 $ 245,870 $ 3,400 $ 314,727 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Assets and Liabilities | The components of our deferred tax assets and liabilities are as follows (in thousands): September 27, September 28, Deferred tax assets (liabilities): Federal and foreign net operating losses and credits $ 263,199 $ 321,982 Intangible assets 9,887 (94,929 ) Property and equipment (1,473 ) (6,293 ) Other non-current deferred tax assets 16,933 13,850 Deferred compensation — 3,810 Deferred gain — 6,575 Interest 7,170 — Valuation allowance (252,536 ) (243,112 ) Total deferred tax asset $ 43,180 $ 1,883 |
Summary of Domestic and Foreign Income (Loss) from Continuing Operations Before Taxes | The domestic and foreign income (loss) from continuing operations before taxes were as follows (in thousands): Fiscal Years 2019 2018 2017 United States $ (458,617 ) $ (145,851 ) $ (111,432 ) Foreign 35,464 (9,384 ) 61,927 (Loss) income from operations before income taxes $ (423,153 ) $ (155,235 ) $ (49,505 ) |
Components of Provision (Benefit) for Income Taxes | The components of the (benefit) provision for income taxes are as follows (in thousands): Fiscal Years 2019 2018 2017 Current: Federal $ 70 $ (6,876 ) $ 100 State 36 (160 ) 225 Foreign 876 1,642 7,307 Current provision (benefit) 982 (5,394 ) 7,632 Deferred: Federal (21,560 ) 75,428 (42,637 ) State 12,907 (15,526 ) (4,037 ) Foreign (41,108 ) (24,652 ) (466 ) Change in valuation allowance 9,424 (51,329 ) 140,419 Deferred (benefit) provision (40,337 ) (16,079 ) 93,279 Total (benefit) provision $ (39,355 ) $ (21,473 ) $ 100,911 |
Reconciliation of Effective Tax Rates | Our effective tax rates differ from the federal and statutory rate as follows: Fiscal Years 2019 2018 2017 Federal statutory rate 21.0% 24.5% 35.0% Foreign rate differential 1.6 5.1 31.9 State taxes net of federal benefit 0.9 0.8 0.2 Warrant liabilities — 4.4 (1.8) Change in valuation allowance (2.4) 34.0 (270.0) Research and development credits 1.4 9.0 12.8 Provision to return adjustments 0.3 8.3 (4.0) Section 382 adjustment (19.3) — — Nondeductible compensation expense (0.6) 1.4 (4.1) Global Intangible Low Taxed Income (2.9) — — Nondeductible legal fees — 0.9 (3.9) 2017 tax reform — (73.7) — Intra-entity license transfer 9.4 — — Other permanent differences (0.1) (0.9) 0.1 Effective income tax rate 9.3% 13.8% (203.8)% |
Activity Related to Unrecognized Tax Benefits | Activity related to unrecognized tax benefits is as follows (in thousands): Amount Balance - September 29, 2017 (1,670 ) Additions based on tax positions — Reductions based on tax positions 1,370 Balance - September 28, 2018 $ (300 ) Additions based on tax positions — Reductions based on tax positions — Balance at September 27, 2019 $ (300 ) |
Summary of Fiscal Tax Years Examination by Jurisdictions | A summary of the fiscal tax years that remain subject to examination, as of September 27, 2019 , for the Company’s significant tax jurisdictions are: Jurisdiction Tax Years Subject to Examination United States—federal 2015 - forward United States—various states 2015 - forward Ireland 2016 - forward |
Share - Based Compensation Pl_2
Share - Based Compensation Plans (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Effects of Stock-Based Compensation Expense Related to Stock-Based Awards to Employees and Nonemployees | The following table shows a summary of share-based compensation expense included in the Consolidated Statements of Operations during the periods presented (in thousands): Fiscal Years 2019 2018 2017 Cost of revenue $ 2,936 $ 3,869 $ 3,189 Research and development 8,551 13,448 10,565 Selling, general and administrative 12,305 14,620 22,581 Total $ 23,792 $ 31,937 $ 36,335 |
Summary of Stock Option Activity | A summary of stock option activity for fiscal year 2019 is as follows (in thousands, except per share amounts and contractual term): Number of Shares Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Options outstanding - September 28, 2018 1,408 $ 32.05 Granted 585 15.44 Exercised (119 ) 13.48 Forfeited, canceled or expired (1,497 ) 31.68 Options outstanding - September 27, 2019 376 $ 13.58 7.03 $ 3,046 Options vested and expected to vest - September 27, 2019 376 $ 13.58 7.03 $ 3,046 Options exercisable - September 27, 2019 91 $ 9.82 2.48 $ 1,081 |
Weighted Average Assumptions used for Calculating Fair Value of Stock Options Granted | The weighted average Monte Carlo input assumptions used for calculating the fair value of these market-based stock options are as follows: Fiscal Years 2019 2018 2017 Risk-free interest rate 2.8 % 2.3 % 1.9 % Expected term (years) 3.9 3.4 7.0 Expected volatility 51.9 % 45.8 % 32.3 % Target price $53.87 $98.99 $67.39 Fiscal Year 2019 Risk free interest rate 1.9 % Years to maturity 3.33 Expected volatility rate 61.5 % Dividend yield — |
Summary of Restricted Stock Awards and Unit Activity | A summary of restricted stock awards and units activity for fiscal year 2019 is as follows (in thousands): Number of Shares Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value Issued and unvested - September 28, 2018 1,872 $ 34.15 $ 38,452 Granted 2,977 18.18 Vested (673 ) 34.87 Forfeited, canceled or expired (1,563 ) 24.06 Issued and unvested - September 27, 2019 2,613 21.81 $ 56,649 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Operating Results Related to Divested Businesses | The accompanying Consolidated Statements of Operations includes the following operating results related to these discontinued operations (in thousands): Fiscal Years 2018 2017 Revenue (1) $ — $ 660 Cost of revenue (1) (596 ) 2,252 Gross profit (loss) 596 (1,592 ) Operating expenses: Research and development (1) 5,251 29,167 Selling, general and administrative (1) 1,560 13,840 Total operating expenses 6,811 43,007 Loss from discontinued operations (1) (6,215 ) (44,599 ) Other income (2) — 7,500 Gain on sale (2) — 18,022 Loss income before income taxes (6,215 ) (19,077 ) Income tax provision (benefit) — — Loss income from discontinued operations (6,215 ) (19,077 ) Cash flow used in Operating Activities (1) (10,734 ) (42,776 ) Cash flow from Investing Activities (2) — 25,522 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Earnings Per Share [Abstract] | |
Computation for Basic and Diluted Net Income (Loss) Per Share of Common Stock | The following table set forth the computation for basic and diluted net income (loss) per share of common stock (in thousands, except per share data): Fiscal Years 2019 2018 2017 Numerator: Loss from continuing operations $ (383,798 ) $ (133,762 ) $ (150,416 ) Loss from discontinued operations — (6,215 ) (19,077 ) Net loss (383,798 ) (139,977 ) (169,493 ) Warrant liability gain — (27,646 ) — Net loss attributable to common stockholders $ (383,798 ) $ (167,623 ) $ (169,493 ) Denominator: Weighted average common shares outstanding-basic 65,686 64,741 60,704 Dilutive effect of warrants — 570 — Weighted average common shares outstanding-diluted 65,686 65,311 60,704 Common stock earnings per share-basic: Continuing operations $ (5.84 ) $ (2.07 ) $ (2.48 ) Discontinued operations — (0.10 ) (0.31 ) Net common stock earnings per share-basic $ (5.84 ) $ (2.16 ) $ (2.79 ) Common stock earnings per share-diluted: Continuing operations $ (5.84 ) $ (2.47 ) $ (2.48 ) Discontinued operations — (0.10 ) (0.31 ) Net common stock earnings per share-diluted $ (5.84 ) $ (2.57 ) $ (2.79 ) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information Regarding Noncash Investing and Financing Activities | The following is supplemental cash flow information regarding non-cash investing and financing activities (in thousands): Fiscal Years 2019 2018 2017 Cash paid for interest $ 34,157 $ 29,698 $ 30,529 Cash (refunded) paid for income taxes $ (1,931 ) $ 3,559 $ (3,161 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Equity [Abstract] | |
Summary of Accumulated Other Comprehensive Income, Net of Income Taxes | The components of accumulated other comprehensive income (loss), net of income taxes, are as follows: Foreign Currency Items Other Items Total Balance - September 29, 2017 $ 3,139 $ (162 ) $ 2,977 Foreign currency translation loss, net of tax (502 ) — (502 ) Unrealized loss on short-term investments, net of tax — (287 ) (287 ) Balance - September 28, 2018 2,637 (449 ) 2,188 Foreign currency translation gain, net of tax 1,693 — 1,693 Unrealized gain on short-term investments, net of tax — 477 477 Balance at September 27, 2019 $ 4,330 $ 28 $ 4,358 |
Geographic and Significant Cu_2
Geographic and Significant Customer Information (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Segment Reporting [Abstract] | |
Summary of Different Geographic Regions | Information regarding long-lived assets in different geographic regions is presented below (in thousands): As of September 27, September 28, Long-Lived Assets by Geographic Region United States $ 116,037 $ 122,888 Asia Pacific (1) 8,917 24,702 Other Countries (2) 7,693 2,333 Total $ 132,647 $ 149,923 (1) Asia Pacific represents Taiwan, Japan, India, Thailand, South Korea, Malaysia, the Philippines, Vietnam and China. (2) No international country or region represented greater than 10% of the total net long-lived assets as of the dates presented, other than the Asia-Pacific region as presented above. |
Summary of Customer Concentrations as Percentage of Total Sales and Accounts Receivable | The following is a summary of customer concentrations as a percentage of total sales and accounts receivable as of and for the periods presented: Fiscal Years Revenue 2019 2018 2017 Customer A 16 % 13 % 11 % Customer B 7 % 6 % 10 % September 27, September 28, Accounts Receivable Customer A 24 % 19 % Customer C 10 % 26 % |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year Fiscal Year 2019 Revenue $ 150,689 $ 128,465 $ 108,306 $ 112,248 $ 499,708 Gross profit 76,625 57,330 33,828 52,925 220,708 (Loss) income from continuing operations (23,396 ) (46,204 ) (324,714 ) 10,516 (383,798 ) Per share data (2) (Loss) income from continuing operations, basic $ (0.36 ) $ (0.71 ) $ (4.93 ) $ 0.16 $ (5.84 ) Per share data (2) (3) (Loss) income from continuing operations, diluted $ (0.44 ) $ (0.71 ) $ (4.95 ) $ 0.16 $ (5.84 ) Fiscal Year 2018 Revenue $ 130,925 $ 150,414 $ 137,872 $ 151,187 $ 570,398 Gross profit 60,954 65,601 48,169 70,982 245,706 Loss from continuing operations (16,970 ) (15,466 ) (85,210 ) (16,116 ) (133,762 ) Loss from discontinued operations (1) (5,599 ) (18 ) (220 ) (378 ) (6,215 ) Per share data (2) Loss from continuing operations, basic $ (0.26 ) $ (0.24 ) $ (1.31 ) $ (0.25 ) $ (2.07 ) Loss from discontinued operations, basic $ (0.09 ) $ 0.00 $ 0.00 $ (0.01 ) $ (0.10 ) Per share data (2) (3) Loss from continuing operations, diluted $ (0.49 ) $ (0.50 ) $ (1.31 ) $ (0.29 ) $ (2.47 ) Loss from discontinued operations, diluted $ (0.09 ) $ 0.00 $ 0.00 $ (0.01 ) $ (0.10 ) (1) During fiscal year 2017, we announced a plan to divest the Compute business of AppliedMicro, and have included the results of the Compute business as discontinued operations in each subsequent quarter. (2) Earnings per share calculations for each of the quarters are based on the weighted average number of shares outstanding and included common stock equivalents in each period. Therefore, the sums of the quarters do not necessarily equal the full year earnings per share. (3) Diluted loss per share for the fiscal first and third quarters of 2019 and the fiscal first, second and fourth quarters of 2018 excluded $5.5 million , $1.9 million , $14.6 million , $17.0 million and $2.8 million |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Sep. 27, 2019segmentmarket | Sep. 28, 2018USD ($) | Sep. 28, 2019USD ($) | |
Description Of Business And Basis Of Presentation [Line Items] | |||
Number of reportable operating segments | segment | 1 | ||
Number of primary markets | market | 3 | ||
Minimum | |||
Description Of Business And Basis Of Presentation [Line Items] | |||
Definite-lived intangible asset useful life | 5 years | ||
Maximum | |||
Description Of Business And Basis Of Presentation [Line Items] | |||
Definite-lived intangible asset useful life | 14 years | ||
Disposal Group, Not Discontinued Operations | LR4 | |||
Description Of Business And Basis Of Presentation [Line Items] | |||
Gain (loss) on disposal | $ 34.3 | ||
Scenario, Forecast | Accounting Standards Update 2016-02 | Minimum | |||
Description Of Business And Basis Of Presentation [Line Items] | |||
Operating lease liability | $ 42 | ||
Operating lease right of use asset | 33 | ||
Scenario, Forecast | Accounting Standards Update 2016-02 | Maximum | |||
Description Of Business And Basis Of Presentation [Line Items] | |||
Operating lease liability | 46 | ||
Operating lease right of use asset | $ 37 |
Summary of Significant Accoun_5
Summary of Significant Accounting policies - Schedule of Estimated Useful Life (Detail) | 12 Months Ended |
Sep. 27, 2019 | |
Minimum | Buildings & Improvements | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 20 years |
Minimum | Capital lease assets | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 5 years |
Minimum | Machinery and equipment | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 2 years |
Minimum | Computer equipment and software | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 2 years |
Minimum | Furniture and fixtures | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 7 years |
Maximum | Buildings & Improvements | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 40 years |
Maximum | Capital lease assets | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 20 years |
Maximum | Machinery and equipment | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 7 years |
Maximum | Computer equipment and software | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 5 years |
Maximum | Furniture and fixtures | |
Property Plant And Equipment Estimated Useful Lives [Line Items] | |
Estimated Useful Life (In Years) | 10 years |
Acquisitons - Additional Inform
Acquisitons - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 09, 2017 | Jul. 31, 2017 | May 26, 2017 | Jan. 26, 2017 | Jun. 29, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 |
Business Acquisition [Line Items] | ||||||||
Equity interests issued and issuable | $ 465,100 | $ 0 | $ 0 | $ 465,082 | ||||
Purchase price holdback | 0 | 375 | ||||||
Goodwill | 314,727 | 314,076 | ||||||
Contingent consideration | 0 | 585 | ||||||
Applied Micro Circuits Corporation | ||||||||
Business Acquisition [Line Items] | ||||||||
Aggregate consideration | 695,400 | 695,380 | ||||||
Cash paid | 287,100 | |||||||
Cash acquired from acquisition | 56,800 | |||||||
Equity interests issued and issuable | 465,100 | |||||||
Equity interests issued and issuable | 453,632 | |||||||
Transaction costs | $ 0 | 0 | 11,900 | |||||
Payments to acquire businesses | 287,060 | |||||||
Goodwill | 184,629 | |||||||
Intangible assets | 412,848 | |||||||
Applied Micro Circuits Corporation | Equity Issuance Costs | ||||||||
Business Acquisition [Line Items] | ||||||||
Transaction costs | 1,000 | |||||||
Picometrix | ||||||||
Business Acquisition [Line Items] | ||||||||
Aggregate consideration | $ 29,500 | |||||||
Transaction costs | 0 | $ 200 | ||||||
Payments to acquire businesses | 33,500 | $ 33,500 | ||||||
Indemnification assets | $ 4,000 | |||||||
Goodwill | 7,769 | |||||||
Intangible assets | $ 19,000 | |||||||
Antario | ||||||||
Business Acquisition [Line Items] | ||||||||
Aggregate consideration | $ 4,800 | |||||||
Payments to acquire businesses | 5,800 | |||||||
Purchase price holdback | $ 1,000 | |||||||
Goodwill | 1,600 | |||||||
Intangible assets | 4,100 | |||||||
Triple Play Communications | ||||||||
Business Acquisition [Line Items] | ||||||||
Aggregate consideration | $ 2,200 | |||||||
Payments to acquire businesses | 2,600 | |||||||
Goodwill | 3,700 | |||||||
Intangible assets | 200 | |||||||
Contingent consideration | $ 400 | |||||||
Employee Stock Options And Restricted Stock | Applied Micro Circuits Corporation | ||||||||
Business Acquisition [Line Items] | ||||||||
Equity interest issued or issuable value assigned | 14,500 | |||||||
Equity interests issued and issuable | $ 9,300 | $ 9,307 |
Revenue - Disaggregation of Re
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 112,248 | $ 108,306 | $ 128,465 | $ 150,689 | $ 151,187 | $ 137,872 | $ 150,414 | $ 130,925 | $ 499,708 | $ 570,398 | $ 698,772 |
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 239,510 | 272,951 | 265,038 | ||||||||
China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 132,329 | 159,763 | 206,136 | ||||||||
Asia Pacific, excluding China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 80,136 | 79,581 | 170,826 | ||||||||
Other Countries | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 47,733 | 58,103 | 56,772 | ||||||||
Telecom | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 180,938 | 222,940 | 340,022 | ||||||||
Data Center | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 114,132 | 162,098 | 172,481 | ||||||||
Industrial & Defense | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 204,638 | $ 185,360 | $ 186,269 |
Acquisitions - Schedule of Aggr
Acquisitions - Schedule of Aggregate Purchase Price Allocated to Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ / shares in Units, $ in Thousands | Aug. 09, 2017 | Jan. 26, 2017 | Jun. 29, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 |
Consideration: | ||||||
Cash paid upon closing, net of cash acquired | $ 375 | $ 1,000 | $ 270,008 | |||
Equity interests issued and issuable | $ 465,100 | 0 | 0 | $ 465,082 | ||
Liabilities assumed: | ||||||
Goodwill | $ 314,727 | 314,076 | ||||
Applied Micro Circuits Corporation | ||||||
Consideration: | ||||||
Payments to acquire businesses | 287,060 | |||||
Cash paid upon closing, net of cash acquired | 230,298 | |||||
Equity interests issued and issuable | 453,632 | |||||
Equity consideration for vested in-the-money stock options and unvested restricted stock units | 2,143 | |||||
Fair value of the replacement equity awards attributable to pre-acquisition service | 9,307 | |||||
Total consideration | 695,400 | 695,380 | ||||
Total consideration paid, less cash acquired | $ 752,142 | |||||
Current assets | 69,881 | |||||
Intangible assets | 412,848 | |||||
Assets held for sale | 40,944 | |||||
Other assets | 9,800 | |||||
Total assets acquired | 533,473 | |||||
Liabilities assumed: | ||||||
Debt | 4,444 | |||||
Other liabilities | 18,278 | |||||
Total liabilities assumed | 22,722 | |||||
Goodwill | 184,629 | |||||
Net assets acquired | 510,751 | |||||
Equity interest issued (in shares) | 9,544,125 | |||||
Share price (in USD per share) | $ 47.53 | |||||
Picometrix | ||||||
Consideration: | ||||||
Payments to acquire businesses | $ 33,500 | $ 33,500 | ||||
Total consideration | $ 29,500 | |||||
Current assets | 6,287 | |||||
Intangible assets | 19,000 | |||||
Other assets | 3,220 | |||||
Total assets acquired | 28,507 | |||||
Liabilities assumed: | ||||||
Current liabilities | 2,311 | |||||
Other liabilities | 465 | |||||
Total liabilities assumed | 2,776 | |||||
Goodwill | 7,769 | |||||
Net assets acquired | $ 25,731 | |||||
Common Stock | Applied Micro Circuits Corporation | ||||||
Consideration: | ||||||
Equity interests issued and issuable | 455,775 | |||||
Employee Stock Options And Restricted Stock | Applied Micro Circuits Corporation | ||||||
Consideration: | ||||||
Equity interests issued and issuable | $ 9,300 | $ 9,307 |
Revenue - Contract Liabilities
Revenue - Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities | $ 10,653 | $ 7,757 |
$ Change | $ (2,896) | |
% Change | (37.00%) | |
Amounts included in contract liabilities at the beginning of the period | $ 7,646 |
Acquisitions - Components of Ac
Acquisitions - Components of Acquired Intangible Assets on a Preliminary Basis (Detail) - Applied Micro Circuits Corporation $ in Thousands | 12 Months Ended |
Sep. 27, 2019USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible assets | $ 412,848 |
Developed technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible assets | $ 78,448 |
Acquired intangible assets, Useful Lives (Years) | 7 years |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible assets | $ 334,400 |
Acquired intangible assets, Useful Lives (Years) | 14 years |
Discontinued Operations, Held-for-sale [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible assets | $ 9,600 |
Discontinued Operations, Held-for-sale [Member] | Developed technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible assets | 9,600 |
Discontinued Operations, Held-for-sale [Member] | Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible assets | $ 0 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Thousands | Sep. 27, 2019USD ($) | Sep. 27, 2019USD ($) |
Disaggregation of Revenue [Line Items] | ||
Contract with customer long-term liability | $ 8,500 | $ 8,500 |
Increase contract with customer | $ (2,896) | |
License | ||
Disaggregation of Revenue [Line Items] | ||
Increase contract with customer | $ (7,000) |
Acquisitions - Summary of Reven
Acquisitions - Summary of Revenue and Earnings (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Business Acquisition [Line Items] | |||||||
Loss from discontinued operations | $ (378) | $ (220) | $ (18) | $ (5,599) | $ 0 | $ (6,215) | $ (19,077) |
Applied Micro Circuits Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Revenue | 110,117 | ||||||
Income (loss) before income taxes | (27,222) | ||||||
Loss from discontinued operations | $ (44,599) |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Supplemental Pro Forma Data (Detail) - Applied Micro Circuits Corporation $ in Thousands | 12 Months Ended |
Sep. 29, 2017USD ($) | |
Business Acquisition [Line Items] | |
Revenue | $ 755,728 |
Net (loss) income | (104,828) |
Loss from discontinued operations | $ (43,734) |
Investments - Summary of Availa
Investments - Summary of Available for Sale Investments (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 101,224 | $ 98,697 |
Gross Unrealized Holding Gains | 113 | 0 |
Gross Unrealized Holding Losses | (111) | (476) |
Aggregate Fair Value | 101,226 | 98,221 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 29,578 | 28,731 |
Gross Unrealized Holding Gains | 112 | 0 |
Gross Unrealized Holding Losses | (93) | (460) |
Aggregate Fair Value | 29,597 | 28,271 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 71,646 | 69,966 |
Gross Unrealized Holding Gains | 1 | 0 |
Gross Unrealized Holding Losses | (18) | (16) |
Aggregate Fair Value | $ 71,629 | $ 69,950 |
Investments - Summary of Contra
Investments - Summary of Contractual Maturities of Investments (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Less than 1 year | $ 75,233 | |
Over 1 year | 25,993 | |
Total investments | $ 101,226 | $ 98,221 |
Investments - Additional Inform
Investments - Additional Information (Detail) | 12 Months Ended | ||
Sep. 27, 2019USD ($)investment | Sep. 28, 2018USD ($) | Sep. 29, 2017USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from sales and maturities of short-term investments | $ 173,020,000 | $ 100,375,000 | $ 44,555,000 |
Gross realized gains | 200,000 | ||
Gross realized losses on available-for-sale securities | $ 200,000 | 300,000 | |
Number of equity investments | investment | 2 | ||
Loss on minority equity investment | $ 7,481,000 | 10,406,000 | $ 0 |
Preferred Stock | Privately Held Manufacturing Company | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investments | 5,000,000 | ||
Impairment on investments | $ 0 | ||
Equity Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Minority investment (as a percent) | 20.00% | ||
Equity Securities | Compute | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investments | $ 36,500,000 | ||
Minority investment (as a percent) | 20.00% | ||
Initial value | $ 36,500,000 | ||
Loss on minority equity investment | 7,500,000 | 10,400,000 | |
Carrying value | $ 18,600,000 | 26,100,000 | |
Maximum | |||
Debt Securities, Available-for-sale [Line Items] | |||
Gross realized gains | $ 100,000 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 101,487 | $ 98,474 |
Total liabilities measured at fair value | 12,364 | 13,714 |
Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 585 | |
Warrant liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 12,364 | 13,129 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 29,597 | 28,271 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 261 | 253 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 71,629 | 69,950 |
Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 261 | 253 |
Total liabilities measured at fair value | 0 | 0 |
Active Markets for Identical Assets (Level 1) | Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | |
Active Markets for Identical Assets (Level 1) | Warrant liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
Active Markets for Identical Assets (Level 1) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 261 | 253 |
Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 101,226 | 98,221 |
Total liabilities measured at fair value | 0 | 0 |
Observable Inputs (Level 2) | Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | |
Observable Inputs (Level 2) | Warrant liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
Observable Inputs (Level 2) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 29,597 | 28,271 |
Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Observable Inputs (Level 2) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 71,629 | 69,950 |
Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Total liabilities measured at fair value | 12,364 | 13,714 |
Unobservable Inputs (Level 3) | Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 585 | |
Unobservable Inputs (Level 3) | Warrant liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 12,364 | 13,129 |
Unobservable Inputs (Level 3) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Unobservable Inputs (Level 3) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 0 | $ 0 |
Fair Value - Quantitative Infor
Fair Value - Quantitative Information Used in Fair Value Calculation of Level 3 Liabilities (Details) | 12 Months Ended | |
Sep. 28, 2018$ / shares | Sep. 27, 2019$ / shares | |
Discounted cash flow | Contingent consideration | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Contingent consideration liability term | 1 month | |
Black-Scholes model | Warrant liability | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Warrant liability term | 2 years 2 months 12 days | 1 year 2 months 12 days |
Unobservable Inputs (Level 3) | Black-Scholes model | Fair Value, Measurements, Recurring | Warrant liability | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Share price (in USD per share) | $ 20.60 | $ 21.68 |
Discount rate | Discounted cash flow | Contingent consideration | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Contingent consideration liability measurement input | 0.092 | |
Discount rate | Black-Scholes model | Warrant liability | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Warrant liability measurement input | 0.0281 | 0.0171 |
Probability of achievement | Discounted cash flow | Contingent consideration | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Contingent consideration liability measurement input | 0.90 | |
Volatility | Black-Scholes model | Warrant liability | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Warrant liability measurement input | 0.607 | 0.614 |
Exercise price | Black-Scholes model | Warrant liability | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Warrant liability measurement input | 14.05 | 14.05 |
Dividend rate | Black-Scholes model | Warrant liability | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Warrant liability measurement input | 0 | 0 |
Fair Value - Changes in Assets
Fair Value - Changes in Assets and Liabilities with Inputs Classified within Level 3 of Fair Value (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Contingent consideration | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 585 | $ 1,679 | $ 848 |
Net Realized/Unrealized Losses (Gains) Included in Earnings | 65 | (394) | (180) |
Purchases and Issuances | 0 | 0 | 1,701 |
Sales and Settlements | (650) | (700) | (1,050) |
Ending balance | 0 | 585 | 1,679 |
Warrant liability | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 13,129 | 40,775 | 38,253 |
Net Realized/Unrealized Losses (Gains) Included in Earnings | (765) | (27,646) | (2,522) |
Purchases and Issuances | 0 | 0 | 0 |
Sales and Settlements | 0 | 0 | 0 |
Ending balance | $ 12,364 | $ 13,129 | $ 40,775 |
Accounts Receivables Allowanc_3
Accounts Receivables Allowances- Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance - beginning of year | $ 6,795 | $ 9,410 | $ 3,279 |
Provision, net | 11,989 | 15,465 | 29,512 |
Charge-offs | (13,737) | (18,080) | (23,381) |
Balance - end of year | 5,047 | 6,795 | 9,410 |
Compensation Credits and Customer Returns Allowance | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance - beginning of year | 6,300 | 8,900 | |
Balance - end of year | $ 4,500 | $ 6,300 | $ 8,900 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 59,184 | $ 71,408 |
Work-in-process | 13,799 | 13,466 |
Finished goods | 34,897 | 37,963 |
Total | $ 107,880 | $ 122,837 |
Property Plant and Equipment -
Property Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 281,834 | $ 278,286 |
Less accumulated depreciation and amortization | (149,187) | (128,363) |
Property and equipment — net | 132,647 | 149,923 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 24,848 | 49,661 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 175,696 | 174,638 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 12,962 | 14,984 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,716 | 2,306 |
Capital lease assets | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 46,496 | 19,380 |
Less accumulated depreciation and amortization | (5,300) | (3,200) |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 18,116 | $ 17,317 |
Property Plant and Equipment _2
Property Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 29,700 | $ 30,700 | $ 27,300 |
Accumulated depreciation | 149,187 | 128,363 | |
Capital lease assets | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | $ 5,300 | $ 3,200 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 12 Months Ended |
Sep. 27, 2019USD ($) | |
Debt Instrument [Line Items] | |
Debt instrument face amount | $ 700,000,000 |
Unamortized deferred financing costs | 8,000,000 |
Term Loans | |
Debt Instrument [Line Items] | |
Unamortized deferred financing costs | 7,400,000 |
Quarterly principal installments | $ 1,700,000 |
Maximum period for reinvestment of business divestiture proceeds | 18 months |
Maximum period for completion of reinvestment of business divestiture proceeds | 6 months |
Estimated fair value of term loans | $ 585,500,000 |
Term Loans | Federal Funds Effective Swap Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.50% |
Term Loans | One Month LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
Term Loans | Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.25% |
Term Loans | Minimum | Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.25% |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Unamortized deferred financing costs | $ 600,000 |
Credit Agreement | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | 160,000,000 |
Remaining borrowing capacity | $ 160,000,000 |
Debt Debt - Schedule of Long-Te
Debt Debt - Schedule of Long-Term Debt Instruments (Details) - Term Loans $ in Thousands | 12 Months Ended |
Sep. 27, 2019USD ($) | |
Debt Instrument [Line Items] | |
Principal balance | $ 672,971 |
Line of credit effective interest rate | 4.36% |
London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.11% |
Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.25% |
Debt - Schedule of Remained Out
Debt - Schedule of Remained Outstanding on Term Loans (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | $ (8,000) | |
Current portion | 6,885 | $ 6,885 |
Long-term, less current portion | 655,272 | $ 658,372 |
Term Loans | ||
Debt Instrument [Line Items] | ||
Principal balance | 672,971 | |
Unamortized discount | (3,414) | |
Unamortized deferred financing costs | (7,400) | |
Total term loans | 662,157 | |
Current portion | 6,885 | |
Long-term, less current portion | $ 655,272 |
Debt - Schedule of Minimum Prin
Debt - Schedule of Minimum Principal Payments under Term Loans (Detail) - Term Loans $ in Thousands | Sep. 27, 2019USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 6,885 |
2021 | 6,885 |
2022 | 6,885 |
2023 | 6,885 |
2024 | 645,431 |
Total | $ 672,971 |
Capital Lease and Financing O_3
Capital Lease and Financing Obligations (Details) $ in Millions | Dec. 28, 2016agreement | Sep. 27, 2019USD ($) | Sep. 28, 2018USD ($) |
Capital Leased Assets [Line Items] | |||
Number of agreements | agreement | 3 | ||
100 Chelmsford Street | |||
Capital Leased Assets [Line Items] | |||
Lease term | 20 years | ||
144 Chelmsford Street Lease | |||
Capital Leased Assets [Line Items] | |||
Lease term | 20 years | ||
121 Hale Street | |||
Capital Leased Assets [Line Items] | |||
Lease term | 14 years | ||
Corporate Facility Leases | |||
Capital Leased Assets [Line Items] | |||
Lease term | 20 years | ||
Financing obligations associated with leased facility | $ 28.2 | $ 28.3 | |
FiBest and Bin Optics | |||
Capital Leased Assets [Line Items] | |||
Financing obligations associated with leased facility | $ 2.3 | $ 1.2 | |
Discount rate | |||
Capital Leased Assets [Line Items] | |||
Discount rate | 0.072 |
Capital Lease and Financing O_4
Capital Lease and Financing Obligations Future Minimum Lease Payments (Details) $ in Thousands | Sep. 27, 2019USD ($) |
Capital Lease and Financing Obligations [Abstract] | |
2020 | $ 3,299 |
2021 | 3,343 |
2022 | 2,884 |
2023 | 2,816 |
2024 | 2,853 |
Thereafter | 39,927 |
Total minimum capital lease payments | 55,122 |
Less amount representing interest | (26,241) |
Present value of net minimum capital lease payments | $ 28,881 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Domestic Plan | Calender Year 2017 | |||
Employee Benefit Plan [Line Items] | |||
Discretionary matching contribution | $ 2,700,000 | ||
Domestic Plan | Calender Year 2018 | |||
Employee Benefit Plan [Line Items] | |||
Discretionary matching contribution | $ 2,600,000 | ||
Domestic Plan | Calender Year 2019 | |||
Employee Benefit Plan [Line Items] | |||
Discretionary matching contribution | 0 | ||
Domestic Plan | Calender Year 2016 | |||
Employee Benefit Plan [Line Items] | |||
Discretionary matching contribution | $ 2,400,000 | ||
Foreign Plan | |||
Employee Benefit Plan [Line Items] | |||
Discretionary matching contribution | $ 1,100,000 | $ 1,200,000 | $ 1,300,000 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Compensation and benefits | $ 20,455 | $ 22,935 |
Distribution costs | 7,797 | 10,670 |
Product warranty | 3,273 | 5,756 |
Restructuring costs | 2,527 | 89 |
Professional fees | 1,554 | 1,875 |
Rent and utilities | 701 | 1,660 |
Income taxes payable | 1,233 | 415 |
Contingent consideration | 0 | 585 |
Purchase price holdback | 0 | 375 |
Other | 2,368 | 5,585 |
Total | $ 39,908 | $ 49,945 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Detail) $ in Thousands | Sep. 27, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 9,987 |
2021 | 9,233 |
2022 | 7,447 |
2023 | 6,061 |
2024 | 5,564 |
Thereafter | 16,437 |
Total minimum lease payments | $ 54,729 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Sep. 27, 2019 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rent expense | $ 9.7 | $ 9.5 | $ 10.9 | |
Asset retirement obligation | $ 1.8 | $ 1.8 | $ 1.8 | |
Long-term purchase commitment | $ 40.6 |
Restructurings- Additional Deta
Restructurings- Additional Details (Details) | 3 Months Ended | 12 Months Ended | ||
Jun. 28, 2019USD ($)facilityemployee | Sep. 27, 2019USD ($) | Sep. 28, 2018USD ($) | Sep. 29, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | $ 19,543,000 | $ 6,265,000 | $ 2,744,000 | |
Payments for restructuring | 17,105,000 | 6,803,000 | ||
Facility related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 11,459,000 | 3,476,000 | 0 | |
Payments for restructuring | 10,481,000 | 3,476,000 | ||
Employee related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 8,084,000 | 2,789,000 | $ 2,744,000 | |
Payments for restructuring | 6,624,000 | 3,327,000 | ||
Long Beach, Belfast and Sydney Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 0 | 6,265,000 | ||
Payments for restructuring | 89,000 | 6,176,000 | ||
Expected remaining restructuring costs | 0 | |||
Long Beach, Belfast and Sydney Restructuring Plan | Facility related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 0 | 3,476,000 | ||
Payments for restructuring | 0 | 3,476,000 | ||
Long Beach, Belfast and Sydney Restructuring Plan | Employee related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 0 | 2,789,000 | ||
Payments for restructuring | 89,000 | $ 2,700,000 | ||
Ithaca Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 5,450,000 | |||
Payments for restructuring | 5,367,000 | |||
Ithaca Restructuring Plan | Facility related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 3,969,000 | |||
Payments for restructuring | 3,899,000 | |||
Ithaca Restructuring Plan | Employee related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 1,481,000 | |||
Payments for restructuring | 1,468,000 | |||
Design Facility Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 2,528,000 | |||
Payments for restructuring | 2,077,000 | |||
Design Facility Restructuring Plan | Facility related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 2,190,000 | |||
Payments for restructuring | 1,739,000 | |||
Design Facility Restructuring Plan | Employee related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 338,000 | |||
Payments for restructuring | 338,000 | |||
2019 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 11,565,000 | |||
Payments for restructuring | 9,572,000 | |||
Number of positions eliminated | employee | 250 | |||
Number of facilities | facility | 7 | |||
2019 Restructuring Plan | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected remaining restructuring costs | 2,500,000 | |||
Expected cost | 14,100,000 | |||
2019 Restructuring Plan | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected remaining restructuring costs | 3,400,000 | |||
Expected cost | 15,000,000 | |||
2019 Restructuring Plan | Facility related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 5,300,000 | |||
Payments for restructuring | 4,843,000 | |||
2019 Restructuring Plan | Facility related expenses | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected remaining restructuring costs | $ 800,000 | |||
2019 Restructuring Plan | Other Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 1,300,000 | |||
2019 Restructuring Plan | Employee related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | 6,265,000 | |||
Payments for restructuring | 4,729,000 | |||
2019 Restructuring Plan | Employee related costs | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected remaining restructuring costs | 2,600,000 | |||
2019 Restructuring Plan | Fixed Asset Impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring cost | $ 4,000,000 |
Restructurings - Summary of Cos
Restructurings - Summary of Costs Related to Restructuring Actions (Detail) - USD ($) | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 89,000 | $ 627,000 | |
Restructuring cost | 19,543,000 | 6,265,000 | $ 2,744,000 |
Charges paid/settled | (17,105,000) | (6,803,000) | |
Ending balance | 2,527,000 | 89,000 | 627,000 |
Long Beach, Belfast and Sydney Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 89,000 | 0 | |
Restructuring cost | 0 | 6,265,000 | |
Charges paid/settled | (89,000) | (6,176,000) | |
Ending balance | 0 | 89,000 | 0 |
Ithaca Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | ||
Restructuring cost | 5,450,000 | ||
Charges paid/settled | (5,367,000) | ||
Ending balance | 83,000 | 0 | |
Design Facility Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | ||
Restructuring cost | 2,528,000 | ||
Charges paid/settled | (2,077,000) | ||
Ending balance | 451,000 | 0 | |
2019 Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | ||
Restructuring cost | 11,565,000 | ||
Charges paid/settled | (9,572,000) | ||
Ending balance | 1,993,000 | 0 | |
Employee related costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 89,000 | 627,000 | |
Restructuring cost | 8,084,000 | 2,789,000 | 2,744,000 |
Charges paid/settled | (6,624,000) | (3,327,000) | |
Ending balance | 1,549,000 | 89,000 | 627,000 |
Employee related costs | Long Beach, Belfast and Sydney Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 89,000 | 0 | |
Restructuring cost | 0 | 2,789,000 | |
Charges paid/settled | (89,000) | (2,700,000) | |
Ending balance | 0 | 89,000 | 0 |
Employee related costs | Ithaca Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | ||
Restructuring cost | 1,481,000 | ||
Charges paid/settled | (1,468,000) | ||
Ending balance | 13,000 | 0 | |
Employee related costs | Design Facility Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | ||
Restructuring cost | 338,000 | ||
Charges paid/settled | (338,000) | ||
Ending balance | 0 | 0 | |
Employee related costs | 2019 Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | ||
Restructuring cost | 6,265,000 | ||
Charges paid/settled | (4,729,000) | ||
Ending balance | 1,536,000 | 0 | |
Facility related expenses | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 0 | |
Restructuring cost | 11,459,000 | 3,476,000 | 0 |
Charges paid/settled | (10,481,000) | (3,476,000) | |
Ending balance | 978,000 | 0 | 0 |
Facility related expenses | Long Beach, Belfast and Sydney Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 0 | |
Restructuring cost | 0 | 3,476,000 | |
Charges paid/settled | 0 | (3,476,000) | |
Ending balance | 0 | 0 | $ 0 |
Facility related expenses | Ithaca Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | ||
Restructuring cost | 3,969,000 | ||
Charges paid/settled | (3,899,000) | ||
Ending balance | 70,000 | 0 | |
Facility related expenses | Design Facility Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | ||
Restructuring cost | 2,190,000 | ||
Charges paid/settled | (1,739,000) | ||
Ending balance | 451,000 | 0 | |
Facility related expenses | 2019 Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | ||
Restructuring cost | 5,300,000 | ||
Charges paid/settled | (4,843,000) | ||
Ending balance | $ 457,000 | $ 0 |
Product Warranties - Additional
Product Warranties - Additional Information (Detail) | 12 Months Ended |
Sep. 27, 2019 | |
Guarantees [Abstract] | |
Term of product warranties | 12 months |
Product Warranties - Schedule o
Product Warranties - Schedule of Product Warranty Liability Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance — beginning of year | $ 5,756 | $ 3,672 | $ 1,039 |
(Divested)/acquired | 0 | (49) | 952 |
Provisions/(expense) | (3,053) | 1,865 | 1,737 |
Direct charges/(payments) | 570 | 268 | (56) |
Balance — end of year | $ 3,273 | $ 5,756 | $ 3,672 |
Impairments (Details)
Impairments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 29, 2019 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment charges | $ 264,786 | $ 6,575 | $ 4,352 | |
Impairments of intangible assets | 344,625 | |||
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | $ 217,500 | |||
Impairments of intangible assets | 272,364 | |||
Technology-Based Intangible Assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | 33,200 | |||
Developed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairments of intangible assets | $ 72,261 | |||
Placed in service | 3,600 | |||
2019 Restructuring Plan | Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | 2,400 | |||
2019 Restructuring Plan | Technology-Based Intangible Assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | 3,900 | |||
Zhongxing Telecommunications Equipment Corporation | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Tangible asset impairment charges | $ 6,600 | |||
Construction in process | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Tangible asset impairment charges | $ 7,800 | |||
In-process research and development | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairments of intangible assets | $ 4,400 |
Intangible Assets - Summary of
Intangible Assets - Summary of Amortization Expense of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total | $ 74,719 | $ 81,694 | $ 65,742 |
Cost of revenue | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total | 29,847 | 33,429 | 30,286 |
Selling, general and administrative | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total | $ 44,872 | $ 48,265 | $ 35,456 |
Intangible Assets - Summary o_2
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 428,952 | $ 773,307 |
Less accumulated amortization | (247,724) | (260,522) |
Intangible assets — net | 181,228 | 512,785 |
Trade name, indefinite lived | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | 3,400 | 3,400 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | 179,682 | 251,673 |
Less accumulated amortization | (134,800) | (140,000) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | 245,870 | 518,234 |
Less accumulated amortization | $ (112,900) | $ (120,500) |
Intangible Assets - Summary o_3
Intangible Assets - Summary of Estimated Amortization of Intangible Assets (Detail) $ in Thousands | Sep. 27, 2019USD ($) |
Amortization expense | |
2020 | $ 50,330 |
2021 | 46,213 |
2022 | 33,433 |
2023 | 26,048 |
2024 | 15,410 |
Thereafter | $ 6,394 |
Intangible Assets - Summary o_4
Intangible Assets - Summary of Activity in Intangible Assets and Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Goodwill and Intangible Assets [Roll Forward] | |||
Beginning balance | $ 773,307 | $ 811,703 | |
Fair value adjustment | 0 | ||
Currency translation adjustments | 270 | 889 | |
Impairments of intangible assets | (344,625) | ||
Ending balance | 428,952 | 773,307 | $ 811,703 |
In-process research and development | |||
Goodwill and Intangible Assets [Roll Forward] | |||
Impairments of intangible assets | (4,400) | ||
Trade name, indefinite lived | |||
Goodwill and Intangible Assets [Roll Forward] | |||
Beginning balance | 3,400 | 3,400 | |
Fair value adjustment | 0 | ||
Currency translation adjustments | 0 | 0 | |
Impairments of intangible assets | 0 | ||
Ending balance | 3,400 | 3,400 | 3,400 |
Total Goodwill | |||
Goodwill and Intangible Assets [Roll Forward] | |||
Beginning balance | 314,076 | 313,765 | |
Fair value adjustment | 2,790 | ||
Currency translation adjustments | 651 | 81 | |
Impairments of intangible assets | 0 | ||
Ending balance | 314,727 | 314,076 | 313,765 |
Acquired technology | |||
Goodwill and Intangible Assets [Roll Forward] | |||
Beginning balance | 251,673 | 251,655 | |
Fair value adjustment | 0 | ||
Currency translation adjustments | 270 | 18 | |
Impairments of intangible assets | (72,261) | ||
Ending balance | 179,682 | 251,673 | 251,655 |
Customer relationships | |||
Goodwill and Intangible Assets [Roll Forward] | |||
Beginning balance | 518,234 | 556,648 | |
Fair value adjustment | 0 | ||
Currency translation adjustments | 0 | 871 | |
Impairments of intangible assets | (272,364) | ||
Ending balance | $ 245,870 | 518,234 | $ 556,648 |
LR4 | Disposal Group, Not Discontinued Operations | |||
Goodwill and Intangible Assets [Roll Forward] | |||
Increase (decrease) in intangible assets | (39,285) | ||
Increase (decrease) in goodwill | (2,560) | ||
LR4 | Disposal Group, Not Discontinued Operations | Trade name, indefinite lived | |||
Goodwill and Intangible Assets [Roll Forward] | |||
Increase (decrease) to indefinite lived intangible assets | 0 | ||
LR4 | Disposal Group, Not Discontinued Operations | Acquired technology | |||
Goodwill and Intangible Assets [Roll Forward] | |||
Increase (decrease) in finite lived intangible assets | 0 | ||
LR4 | Disposal Group, Not Discontinued Operations | Customer relationships | |||
Goodwill and Intangible Assets [Roll Forward] | |||
Increase (decrease) in finite lived intangible assets | $ (39,285) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ 247,724 | $ 260,522 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ 134,800 | 140,000 |
Weighted average useful life | 7 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ 112,900 | $ 120,500 |
Weighted average useful life | 9 years |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Deferred tax assets (liabilities): | ||
Federal and foreign net operating losses and credits | $ 263,199 | $ 321,982 |
Intangible assets | 9,887 | |
Intangible assets | (94,929) | |
Property and equipment | (1,473) | (6,293) |
Other non-current deferred tax assets | 16,933 | 13,850 |
Deferred compensation | 0 | 3,810 |
Deferred gain | 0 | 6,575 |
Interest | 7,170 | 0 |
Valuation allowance | (252,536) | (243,112) |
Total deferred tax asset | $ 43,180 | $ 1,883 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Income Taxes [Line Items] | |||
Reserve related to future rebates and returns | $ 93,500 | ||
Valuation allowance amount | 252,500 | $ 243,100 | |
Valuation allowance change | 9,424 | (51,329) | $ 140,419 |
Income (loss) from operations before income taxes | $ (423,153) | $ (155,235) | $ (49,505) |
Effective income tax rate | 9.30% | 13.80% | (203.80%) |
Deferred Tax Asset, Intra-entity Transfer, Asset Other than Inventory | $ 39,800 | ||
Provisional undistributed accumulated earnings of foreign subsidiary | 86,700 | ||
Foreign earnings repatriated | 156,800 | ||
CANADA | |||
Income Taxes [Line Items] | |||
Valuation allowance amount | 19,000 | $ 13,600 | |
United States | |||
Income Taxes [Line Items] | |||
Valuation allowance change | 9,400 | ||
Grand Cayman | |||
Income Taxes [Line Items] | |||
Foreign earnings repatriated | 59,700 | ||
Ireland | |||
Income Taxes [Line Items] | |||
Foreign earnings repatriated | 25,600 | ||
Federal | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 923,400 | ||
Applied Micro Circuits Corporation | Federal | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 479,200 | ||
Mindspeed Wireless Business | Federal | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 158,900 | ||
BinOptics Corporation | Federal | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 26,200 | ||
MACOM | Federal | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | $ 259,100 |
Income Taxes - Summary of Domes
Income Taxes - Summary of Domestic and Foreign Income (Loss) from Continuing Operations Before Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (458,617) | $ (145,851) | $ (111,432) |
Foreign | 35,464 | (9,384) | 61,927 |
(Loss) income from operations before income taxes | $ (423,153) | $ (155,235) | $ (49,505) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Current: | |||
Federal | $ 70 | $ (6,876) | $ 100 |
State | 36 | (160) | 225 |
Foreign | 876 | 1,642 | 7,307 |
Current provision (benefit) | 982 | (5,394) | 7,632 |
Deferred: | |||
Federal | (21,560) | 75,428 | (42,637) |
State | 12,907 | (15,526) | (4,037) |
Foreign | (41,108) | (24,652) | (466) |
Change in valuation allowance | 9,424 | (51,329) | 140,419 |
Deferred (benefit) provision | (40,337) | (16,079) | 93,279 |
Total (benefit) provision | $ (39,355) | $ (21,473) | $ 100,911 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rates (Detail) | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 24.50% | 35.00% |
Foreign rate differential | 1.60% | 5.10% | 31.90% |
State taxes net of federal benefit | 0.90% | 0.80% | 0.20% |
Warrant liabilities | 0.00% | 4.40% | (1.80%) |
Change in valuation allowance | (2.40%) | 34.00% | (270.00%) |
Research and development credits | 1.40% | 9.00% | 12.80% |
Provision to return adjustments | 0.30% | 8.30% | (4.00%) |
Effective income tax rate | 9.30% | 13.80% | (203.80%) |
Effective Income Tax Rate Reconciliation Section 382 Adjustment | (19.30%) | 0.00% | 0.00% |
Nondeductible compensation expense | (0.60%) | 1.40% | (4.10%) |
Global Intangible Low Taxed Income | (2.90%) | 0.00% | 0.00% |
Nondeductible legal fees | 0.00% | 0.90% | (3.90%) |
2017 tax reform | 0.00% | (73.70%) | 0.00% |
Intra-entity license transfer | 9.40% | 0.00% | 0.00% |
Other permanent differences | (0.10%) | (0.90%) | 0.10% |
Income Taxes - Activity Related
Income Taxes - Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ (300) | $ (1,670) |
Additions based on tax positions | 0 | 0 |
Reductions based on tax positions | 0 | 1,370 |
Ending balance | $ (300) | $ (300) |
Share-Based Compensation Plans
Share-Based Compensation Plans - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2017USD ($)$ / sharesshares | Jun. 28, 2019shares | Sep. 27, 2019USD ($)trancheplanemployee$ / sharesshares | Sep. 28, 2018USD ($)$ / sharesshares | Sep. 29, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of equity incentive plans | plan | 3 | ||||
Number of shares available for future issuance (in shares) | 15,700,000 | ||||
Compensation and benefits | $ | $ 20,455 | $ 22,935 | |||
Share-based compensation expense | $ | $ (23,792) | $ (31,937) | $ (36,335) | ||
Common stock, issued (in shares) | 66,177,000 | 65,202,000 | |||
Unrecognized compensation costs | $ | $ 47,000 | ||||
Weighted average period for recognition of unrecognized compensation costs | 2 years 10 months 24 days | ||||
Intrinsic value of options recognized | $ | $ 700 | $ 900 | 8,900 | ||
Options granted (in shares) | 585,000 | ||||
Expected term (years) | 3 years | ||||
Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant (in shares) | 3,400,000 | ||||
Unrecognized compensation expense | $ | $ 300 | ||||
Incentive Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
ISU awards outstanding (in shares) | 195,598 | 191,620 | |||
Compensation and benefits | $ | $ 2,000 | $ 1,900 | |||
ISU awards exercised (in shares) | 69,035 | ||||
Total fair value of restricted stock awards and units vesting | $ | $ 1,200 | ||||
Share-based compensation expense | $ | $ 1,300 | $ 1,100 | $ (3,900) | ||
Stock Options with Performance-based Vesting Criteria | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted (in shares) | 585,000 | 325,000 | 320,000 | ||
Options, aggregate grant date fair value | $ | $ 2,400 | $ 5,000 | $ 4,300 | ||
Cancelled options (in shares) | 1,122,500 | ||||
Performance Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation costs | $ | $ 2,800 | ||||
Granted (in shares) | 748,328 | ||||
Number of employees affected | employee | 13 | ||||
Plan modification incremental compensation cost | $ | $ 8,200 | ||||
Award requisite service period | 3 years | ||||
Forfeited, canceled or expired (in shares) | 745,047 | ||||
Stock Options with Market-based Vesting Criteria | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award term | 7 years | ||||
Weighted average period for recognition of unrecognized compensation costs | 3 years | ||||
Grant date fair value of options (in USD per share) | $ / shares | $ 7.47 | $ 15.52 | $ 13.18 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 51.90% | 45.80% | 32.30% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.80% | 2.30% | 1.90% | ||
Expected term (years) | 3 years 10 months 24 days | 3 years 4 months 24 days | 7 years | ||
Non Qualified Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Measurement period for target price per share for recognition of remaining unamortized compensation cost | 30 days | ||||
Options granted (in shares) | 69,076 | ||||
Incentive And Nonqualified Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average period for recognition of unrecognized compensation costs | 4 years 6 months | ||||
Grant date fair value of options (in USD per share) | $ / shares | $ 17.55 | ||||
Options, aggregate grant date fair value | $ | $ 1,400 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 45.70% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.21% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ / shares | $ 36.61 | ||||
Expected term (years) | 6 years 6 months | ||||
Restricted Stock Awards and Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total fair value of restricted stock awards and units vesting | $ | $ 11,700 | $ 19,700 | $ 51,200 | ||
Granted (in shares) | 2,977,000 | ||||
Forfeited, canceled or expired (in shares) | 1,563,000 | ||||
Granted (in USD per share) | $ / shares | $ 18.18 | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 61.50% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.90% | ||||
Aggregate intrinsic value of vesting restricted stock units | $ | $ 56,300 | ||||
Expected term (years) | 3 years 3 months 29 days | ||||
PRSU awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of tranches | tranche | 3 | ||||
Granted (in shares) | 1,005,854 | ||||
Employee Stock | Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum ESPP payroll deductions | 15.00% | ||||
Common stock, issued (in shares) | 421,777 | 305,851 | 146,149 | ||
Maximum percentage annual increase of share available for future issuance | 1.25% | ||||
Annual increase of share available for future issuance (in shares) | 550,000 | ||||
Employee Stock | 2012 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual increase of share available for future issuance (in shares) | 1,900,000 | ||||
Incentive Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted (in shares) | 10,924 | ||||
Employee Stock Option | 2012 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum percentage annual increase of share available for future issuance | 4.00% | ||||
Market Based Performance Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 200,000 | ||||
Granted (in USD per share) | $ / shares | $ 17.65 | ||||
Aggregate grant date fair value | $ | $ 3,500 | ||||
Allocated compensation expense | $ | $ 3,500 | ||||
Compute Business | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ | $ (800) | ||||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award term | 4 years | ||||
Minimum | PRSU awards | Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Earnings percentage of targeted shares | 0.00% | ||||
Minimum | PRSU awards | Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Earnings percentage of targeted shares | 0.00% | ||||
Minimum | PRSU awards | Tranche Three | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Earnings percentage of targeted shares | 0.00% | ||||
Minimum | Market Based Performance Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Earnings percentage of targeted shares | 0.00% | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award term | 7 years | ||||
Maximum | PRSU awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Earnings percentage of targeted shares | 300.00% | ||||
Incremental PRSU that could vest if all performance criteria are achieved | 1,196,337 | ||||
Maximum | PRSU awards | Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Earnings percentage of targeted shares | 300.00% | ||||
Maximum | PRSU awards | Tranche Three | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Earnings percentage of targeted shares | 300.00% | ||||
Maximum | Market Based Performance Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Earnings percentage of targeted shares | 150.00% |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Effects of Stock-Based Compensation Expense Related to Stock-Based Awards to Employees and Non-Employees (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 23,792 | $ 31,937 | $ 36,335 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 2,936 | 3,869 | 3,189 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 8,551 | 13,448 | 10,565 |
Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 12,305 | $ 14,620 | $ 22,581 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Sep. 27, 2019USD ($)$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 1,408 |
Granted (in shares) | shares | 585 |
Exercised (in shares) | shares | (119) |
Forfeited, canceled or expired (in shares) | shares | (1,497) |
Ending balance (in shares) | shares | 376 |
Weighted-Average Exercise Price per Share | |
Beginning balance (in USD per share) | $ / shares | $ 32.05 |
Granted (in USD per share) | $ / shares | 15.44 |
Exercised (in USD per share) | $ / shares | 13.48 |
Forfeited, canceled or expired (in USD per share) | $ / shares | 31.68 |
Ending balance (in USD per share) | $ / shares | $ 13.58 |
Options Outstanding, Additional Disclosures | |
Weighted-Average Remaining Contractual Term (in Years) | 7 years 10 days |
Aggregate Intrinsic Value | $ | $ 3,046 |
Options Vested and Expected to Vest | |
Number of shares (in shares) | shares | 376 |
Weighted-Average Exercise Price Per Share (in USD per share) | $ / shares | $ 13.58 |
Weighted-Average Remaining Contractual Term (in Years) | 7 years 10 days |
Aggregate Intrinsic Value | $ | $ 3,046 |
Options Exercisable | |
Number of Shares (in shares) | shares | 91 |
Weighted-Average Exercise Price per Share (in USD per share) | $ / shares | $ 9.82 |
Weighted-Average Remaining Contractual Term (in Years) | 2 years 5 months 23 days |
Aggregate Intrinsic Value | $ | $ 1,081 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans - Weighted Average Assumptions used for Calculating Fair Value of Stock Options Granted (Detail) - $ / shares | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 3 years | ||
Stock Options with Market-based Vesting Criteria | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 3 years 10 months 24 days | 3 years 4 months 24 days | 7 years |
Target price | $ 53.87 | $ 98.99 | $ 67.39 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 3 years 3 months 29 days | ||
Expected dividends | 0.00% |
Share-Based Compensation Plan_5
Share-Based Compensation Plans - Summary of Restricted Stock Awards and Units Activity (Detail) - Restricted Stock Awards and Units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Number of Shares | ||
Beginning balance- unvested (in shares) | 1,872 | |
Granted (in shares) | 2,977 | |
Vested (in shares) | (673) | |
Forfeited, canceled or expired (in shares) | (1,563) | |
Ending balance- unvested (in shares) | 2,613 | |
Weighted-Average Grant Date Fair Value | ||
Beginning balance- unvested (in USD per share) | $ 34.15 | |
Granted (in USD per share) | 18.18 | |
Vested (in USD per share) | 34.87 | |
Forfeited, canceled or expired (in USD per share) | 24.06 | |
Ending balance- unvested (in USD per share) | $ 21.81 | |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value | $ 56,649 | $ 38,452 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | Sep. 27, 2019 | Sep. 28, 2018 | Mar. 31, 2012 |
Class of Warrant or Right [Line Items] | |||
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 | |
Preferred stock, par value (in USD per share) | $ 0.001 | $ 0.001 | |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 | |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 | |
Common stock, subject to forfeiture (in shares) | 0 | 6,100 | |
Common stock warrants price per share (in USD per share) | $ 14.05 | ||
Common Stock | |||
Class of Warrant or Right [Line Items] | |||
Common stock warrants (in shares) | 1,281,358 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Cadence | Public Company with a Common Director | ||
Related Party Transaction [Line Items] | ||
Expenses from transactions with related party | $ 4.1 | $ 6.3 |
Discontinued Operations - Dives
Discontinued Operations - Divested Business (Details) - USD ($) $ in Thousands | May 10, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | Nov. 27, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of assets | $ 5,541 | $ 1,274 | $ 215 | ||
LR4 | Disposal Group, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of assets | $ 5,000 | ||||
Additional consideration expected to be received | 11,900 | ||||
Gain (loss) on disposal | 34,300 | ||||
Inventory | 13,700 | ||||
Property, plant and equipment | 7,600 | ||||
Goodwill | 2,600 | ||||
Transition services expense | 0 | 2,000 | |||
Other receivables | 14,000 | ||||
Allowance for doubtful other receivables | 300 | ||||
Transition services reimbursement to be received | $ 1,500 | ||||
Scenario, Forecast | LR4 | Disposal Group, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash consideration on sale of business | $ 17,200 | ||||
Other Current Assets | LR4 | Disposal Group, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Additional consideration expected to be received | 7,400 | ||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | LR4 | Disposal Group, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Additional consideration expected to be received | 4,800 | ||||
Customer relationships | LR4 | Disposal Group, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Intangible assets | 27,700 | ||||
Maximum | LR4 | Disposal Group, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Transition service agreement liability | $ 2,000 |
Discontinued Operations - Disco
Discontinued Operations - Discontinued Operations (Detail) - USD ($) | Aug. 17, 2015 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets held for sale | $ 0 | $ 4,840,000 | ||
Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Other income | 0 | $ 7,500,000 | ||
Gain on sale | 0 | $ 18,022,000 | ||
Discontinued Operations, Disposed of by Sale | Automotive Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on sale | 18,000,000 | |||
Discontinued Operations, Disposed of by Sale | Consulting Agreement | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Non-design advisory services period | 2 years | |||
Discontinued Operations, Disposed of by Sale | Consulting Agreement | Maximum | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash consideration on sale of business | $ 15,000,000 | |||
Consulting Agreement | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Other income | $ 0 | 0 | ||
Equity Securities | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Minority investment (as a percent) | 20.00% | |||
Equity Securities | Compute | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Investments | $ 36,500,000 | |||
Minority investment (as a percent) | 20.00% | |||
Selling, general and administrative | Disposal Group, Not Discontinued Operations | Compute | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Transition services agreement reimbursements | $ 100,000 | $ 3,600,000 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Operating Results Through Dates of Divestiture Related to Divested Businesses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Operating expenses: | |||||||
Loss income from discontinued operations | $ (378) | $ (220) | $ (18) | $ (5,599) | $ 0 | $ (6,215) | $ (19,077) |
Cash flow from Investing Activities (2) | $ 0 | 4,737 | 25,520 | ||||
Discontinued Operations, Disposed of by Sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Revenue (1) | 0 | 660 | |||||
Cost of revenue (1) | (596) | 2,252 | |||||
Gross profit (loss) | 596 | (1,592) | |||||
Operating expenses: | |||||||
Research and development (1) | 5,251 | 29,167 | |||||
Selling, general and administrative (1) | 1,560 | 13,840 | |||||
Total operating expenses | 6,811 | 43,007 | |||||
Loss from discontinued operations (1) | (6,215) | (44,599) | |||||
Other income (2) | 0 | 7,500 | |||||
Gain on sale (2) | 0 | 18,022 | |||||
Loss income before income taxes | (6,215) | (19,077) | |||||
Income tax provision (benefit) | 0 | 0 | |||||
Loss income from discontinued operations | (6,215) | (19,077) | |||||
Cash flow used in Operating Activities (1) | (10,734) | (42,776) | |||||
Cash flow from Investing Activities (2) | $ 0 | $ 25,522 |
Earnings Per Share - Computatio
Earnings Per Share - Computation for Basic and Diluted Net Income (Loss) Per Share of Common Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Numerator: | |||||||||||
Loss from continuing operations | $ 10,516 | $ (324,714) | $ (46,204) | $ (23,396) | $ (16,116) | $ (85,210) | $ (15,466) | $ (16,970) | $ (383,798) | $ (133,762) | $ (150,416) |
Loss from discontinued operations | $ (378) | $ (220) | $ (18) | $ (5,599) | 0 | (6,215) | (19,077) | ||||
Net loss | (383,798) | (139,977) | (169,493) | ||||||||
Warrant liability gain | 0 | (27,646) | 0 | ||||||||
Net loss attributable to common stockholders | $ (383,798) | $ (167,623) | $ (169,493) | ||||||||
Denominator: | |||||||||||
Weighted average common shares outstanding-basic (in shares) | 65,686,000 | 64,741,000 | 60,704,000 | ||||||||
Dilutive effect of warrants (in shares) | 0 | 569,667 | 0 | ||||||||
Weighted average common shares outstanding-diluted (in shares) | 65,686,000 | 65,311,000 | 60,704,000 | ||||||||
Basic loss per share: | |||||||||||
Continuing operations (in USD per share) | $ 0.16 | $ (4.93) | $ (0.71) | $ (0.36) | $ (0.25) | $ (1.31) | $ (0.24) | $ (0.26) | $ (5.84) | $ (2.07) | $ (2.48) |
Discontinued operations (in USD per share) | 0 | (0.10) | (0.31) | ||||||||
Loss per share-basic (in USD per share) | (5.84) | (2.16) | (2.79) | ||||||||
Diluted loss per share: | |||||||||||
Continuing operations (in USD per share) | $ 0.16 | $ (4.95) | $ (0.71) | $ (0.44) | $ (0.29) | $ (1.31) | $ (0.50) | $ (0.49) | (5.84) | (2.47) | (2.48) |
Discontinued operations (in USD per share) | 0 | (0.10) | (0.31) | ||||||||
Loss per share-diluted (in USD per share) | $ (5.84) | $ (2.57) | $ (2.79) |
Earnings Per Share - Common Equ
Earnings Per Share - Common Equivalent Shares Excluded from Calculation from Net Income Per Share (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Warrant liability (gain) expense | $ (765) | $ (27,646) | $ 2,522 |
Antidilutive securities excluded from earnings per share (in shares) | 386,552 | 375,940 | 1,877,401 |
Dilutive effect of warrants (in shares) | 0 | 569,667 | 0 |
Warrant | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from earnings per share (in shares) | 214,303 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 26, 2017 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 |
Business Acquisition [Line Items] | ||||
Unpaid amounts related to purchase of assets | $ 600 | $ 4,000 | ||
Equity interests issued and issuable | $ 465,100 | 0 | 0 | $ 465,082 |
Fixed assets acquired | 1,500 | 18,400 | ||
Loss on minority equity investment | 7,481 | 10,406 | $ 0 | |
Equity Securities | Compute | ||||
Business Acquisition [Line Items] | ||||
Investments | 36,500 | |||
Loss on minority equity investment | 7,500 | 10,400 | ||
Compute Business | ||||
Business Acquisition [Line Items] | ||||
Cash consideration on sale of business | 36,500 | |||
Developer Funded | ||||
Business Acquisition [Line Items] | ||||
Fixed assets acquired | $ 300 | $ 12,700 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information Regarding Noncash Investing and Financing Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash paid for interest | $ 34,157 | $ 29,698 | $ 30,529 |
Cash (refunded) paid for income taxes | $ (1,931) | $ 3,559 | $ (3,161) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Accumulated Other Comprehensive Income, Net of Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 668,675 | $ 777,374 |
Ending balance | 313,896 | 668,675 |
Foreign currency translation loss, net of tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 2,637 | 3,139 |
Other comprehensive income | 1,693 | (502) |
Ending balance | 4,330 | 2,637 |
Other Items | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (449) | (162) |
Ending balance | 28 | (449) |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 2,188 | 2,977 |
Ending balance | 4,358 | 2,188 |
Unrealized loss on short-term investments, net of tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Other comprehensive income | $ 477 | $ (287) |
Geographic and Significant Cu_3
Geographic and Significant Customer Information - Additional Information (Detail) | 12 Months Ended | ||
Sep. 27, 2019segmentcustomer | Sep. 28, 2018customer | Sep. 29, 2017customer | |
Segment Reporting Information [Line Items] | |||
Number of reportable operating segments | segment | 1 | ||
Total Revenue | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Number of major customers | customer | 10 | 10 | 10 |
Concentration risk, percentage | 54.00% | 57.00% | 52.00% |
Geographic and Significant Cu_4
Geographic and Significant Customer Information - Summary of Different Geographic Regions (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 132,647 | $ 149,923 |
United States | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 116,037 | 122,888 |
Asia Pacific, excluding China | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 8,917 | 24,702 |
Other Countries | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 7,693 | $ 2,333 |
Geographic and Significant Cu_5
Geographic and Significant Customer Information - Summary of Customer Concentrations as Percentage of Total Sales and Accounts Receivable (Detail) - Customer Concentration Risk | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Total Sales | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 54.00% | 57.00% | 52.00% |
Total Sales | Customer A | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 16.00% | 13.00% | 11.00% |
Total Sales | Customer B | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 7.00% | 6.00% | 10.00% |
Accounts Receivable | Customer A | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 24.00% | 19.00% | |
Accounts Receivable | Customer C | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 10.00% | 26.00% |
Quarterly Financial Data - Sche
Quarterly Financial Data - Schedule of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 112,248 | $ 108,306 | $ 128,465 | $ 150,689 | $ 151,187 | $ 137,872 | $ 150,414 | $ 130,925 | $ 499,708 | $ 570,398 | $ 698,772 |
Gross profit | 52,925 | 33,828 | 57,330 | 76,625 | 70,982 | 48,169 | 65,601 | 60,954 | 220,708 | 245,706 | 326,884 |
Loss from continuing operations | $ 10,516 | $ (324,714) | $ (46,204) | $ (23,396) | (16,116) | (85,210) | (15,466) | (16,970) | (383,798) | (133,762) | (150,416) |
Loss from discontinued operations | $ (378) | $ (220) | $ (18) | $ (5,599) | $ 0 | $ (6,215) | $ (19,077) | ||||
Per share data | |||||||||||
Loss from continuing operations (in USD per share) | $ 0.16 | $ (4.93) | $ (0.71) | $ (0.36) | $ (0.25) | $ (1.31) | $ (0.24) | $ (0.26) | $ (5.84) | $ (2.07) | $ (2.48) |
Loss from discontinued operations (in USD per share) | (0.01) | 0 | 0 | (0.09) | 0 | (0.10) | (0.31) | ||||
Per share data | |||||||||||
Loss from continuing operations (in USD per share) | $ 0.16 | $ (4.95) | $ (0.71) | $ (0.44) | (0.29) | (1.31) | (0.50) | (0.49) | (5.84) | (2.47) | (2.48) |
Loss from discontinued operations (in USD per share) | $ (0.01) | $ 0 | $ 0 | $ (0.09) | $ 0 | $ (0.10) | $ (0.31) | ||||
Warrant liability gain | $ 1,900 | $ 5,500 | $ 2,800 | $ 17,000 | $ 14,600 |